UK consumer confidence hit a new record low in September as four measures were down in comparison on the previous month.
According to the latest GfK Consumer Confidence Index, overall figures saw a decrease by five points to -49 in September.
The Major Purchase Index, which includes big ticket items such as furniture, is unchanged this month at -38; this is 32 points lower than this month last year.
The measure for the general economic situation of the country during the last 12 months is down four points at -72; this is 29 points lower than in September 2021.
The index measuring changes in personal finances over the last 12 months fell three points to -28; this is 24 points worse than September 2021.
The Savings Index is down seven points this month at +11; this is 11 points lower than this time last year.
Joe Staton, Client Strategy Director GfK, says: “UK Consumer Confidence tumbled in September to a new low of -49, the worst Overall Index Score since records began in 1974. There have been new lows in four out of the last five months and all measures are once again severely depressed. Especially worrying are the two key future-facing indicators on personal finances in the coming year (down nine points to -40) and the economy in the next 12 months (down eight to -68).
“These numbers are where many forecasters look for signs of economic optimism among consumers and the results deliver very bad news in that respect. Consumers are buckling under the pressure of the UK’s growing cost-of-living crisis driven by rapidly rising food prices, domestic fuel bills and mortgage payments.
“They are asking themselves when and how the situation will improve. Today’s mini-budget, and the longer-term agenda to drive the economy and help rebalance household finances, will be the first major opportunity to deliver that improvement. It will also be a major test for the popularity of Liz Truss’s new Government.”