Credit, Collections & Insolvency News
Consumer confidence has fallen to a record low, according to research from data provider GfK.
The consumer confidence index for August decreased by three points to minus 44, the lowest level since records began. All five measures – which include confidence in personal finances, general economic outlook, and savings – were down in comparison to the same time last month.
The public’s forecast for the next 12 months is also gloomy, recording a heavy fall in recent months to a new low of minus 60.
The GfK consumer confidence barometer, which surveys the public about their opinion of the economy, was at its the lowest level this month since records began in 1974.
Joe Staton, Client Strategy Director, GfK said “The Overall Index Score dropped three points in August to -44, the lowest since records began in 1974. All measures fell, reflecting acute concerns as the cost-of-living soars. A sense of exasperation about the UK’s economy is the biggest driver of these findings.”
“Our sub-measure on the general economy over the past year has decreased month-on-month since December 2021 – that’s eight months in a row. A similar consistent sharp decline since December 2021 is evident in how consumers see the economy a year ahead and this month’s score of -60 sets a new record.”
“These findings point to a sense of capitulation, of financial events moving far beyond the control of ordinary people. With headline after headline revealing record inflation eroding household buying power, the strain on the personal finances of many in the UK is alarming. Just making ends meet has become a nightmare and the crisis of confidence will only worsen with the darkening days of autumn and the colder months of winter.”
