Big ticket consumer confidence screeches into reverse
September 19, 2024
Consumer confidence to purchase big ticket items like furniture and flooring has plummeted 10 points in September – reversing the gains in recents months, according to retail analysts GfK.
The well respected Index was up 7 points in July and up 3 points in August, promoting optimism that political and economic stablility was finally turning the corner on consumer optimism.
But the "Government gloom" following Keir Starmer's message that things will get worse before they get better is widely recognised to have stalled any recovery in confidence.
"Following the withdrawal of the winter fuel payments, and clear warnings of further difficult decisions to come on tax, spending and welfare, consumers are nervously awaiting the Budget decisions on October 30,” says Neil Bellamy, consumer insights director at GfK.
“Strong consumer confidence matters because it underpins economic growth and is a significant driver of shoppers’ willingness to spend," he added. "Despite stable inflation and the prospect of further cuts in the base interest rate, this is not encouraging news for the UK’s new Government.”
In the monthly survey, people's expectations for the general economy over the next 12 months fell by 12 points to minus 27, while the forecast for personal finances is down nine points to minus three.
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