Consumer confidence in the UK declined again in October, taking the score back down to the level last seen in March this year.
According to the latest figures from GfK on Friday, the overall index score slipped one point to -21 this month. Three measures declined and two rose compared with September’s announcement, it said.
The index measuring changes in personal finances during the last year was down one point at -10; but came in nine points better than October 2023, while the forecast for personal finances over the year was up one point at -2, six points higher than this time last year.
The report also revealed that the measure for the general economic situation of the country during the last year was down five points at -42; some 12 points higher than in October 2023.
Meanwhile, expectations for the general economic situation over the next 12 months declined 1 point at -28; this was four points better than a year ago.
The major purchase index rose two points to -21 (13 points higher) while the savings index rose four points to +27; this was two points higher than October last year.
With the autumn budget just a few days away, these figures are likely to be particularly scrutinised by analysts.
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Neil Bellamy, consumer insights director at GfK, said: “As the budget statement looms, consumers are in a despondent mood despite a fall in the headline rate of inflation. This month’s Consumer Confidence Barometer paints a picture of people holding their breath to see what’s in store for them on 30 October.”
This month’s survey was conducted among a sample of 2,001 individuals between 1 and 15 October, 2024.
Linda Ellett, UK head of consumer, retail and leisure for KPMG, said: “Consumer confidence continues to be influenced by three things: essential costs for households, job security in a toughening labour market, and perception about the economic climate on the horizon.
She added: “KPMG research shows that half of those aged between 25 and 34 expect their financial security to improve in the next six months. Many are mortgage holders and falling rates are giving increased optimism that refixing or trackers may deliver less painful monthly bills than feared or planned for.
According to Ellett, People aged 65 and over, however, are most likely to expect their financial security to worsen in the next six months. “Rising energy costs, winter fuel allowance cuts and the potential inclusion of pension-related measures in the forthcoming budget may be factors that are reflected in this finding,” she said.
