The latest data from GfK reveals a slight decrease in consumer confidence ahead of the anticipated Budget statement.
- GfK’s Consumer Confidence Index dropped by one point in October to -21, equalling March’s level.
- Consumers’ future financial outlook has slightly improved by one point, yet remains negative at -1.
- The perception of the general economic situation worsened by five points over the past year, hitting -42.
- Despite challenges, the willingness to make major purchases increased by two points, indicating mixed sentiments.
GfK’s Consumer Confidence Index has revealed a modest decline, as it dropped by one point to -21 in October. This shift aligns with levels observed earlier in March, suggesting a prolonged cautiousness among consumers as the Budget announcement approaches.
While the index indicates a slight optimism regarding personal finances for the upcoming year, evidenced by an increase of one point to -1, it remains in the negative zone. This score is marginally better than the figures recorded at this time last year, highlighting a slow but steady recovery in consumer expectations.
In contrast, the assessment of personal finances over the past 12 months saw a minor decline, as the indicator slipped by one point to -10. Despite this decrease, it is still nine points above the readings from October of the previous year, reflecting some gains have been maintained.
A more significant concern stems from consumer sentiment about the national economic environment over the past year, which fell by five points to -42. However, this figure is still an improvement of 12 points compared to sentiments recorded in June 2022, indicating a slight easing of negative perceptions.
Looking ahead, expectations for the economic condition over the next 12 months have diminished slightly, dropping by one point to -28. Nevertheless, this is an improvement of four points from a year ago, suggesting that while bleak, the outlook is less pessimistic than before.
Interestingly, the index for major purchases registered a rise of two points to -21. This score stands 13 points higher than the previous year’s data, pointing to a cautiously growing confidence in making significant expenditures despite the overall sentiment.
As the Budget presentation nears, consumer sentiment remains subdued, reflecting persistent economic uncertainties.
