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Consumer confidence "in freefall" says GfK
April 25, 2022
Consumer confidence in buying big ticket items like furniture and flooring has crashed according to the leading retail analysts GfK whose Major Purchase Index for April is down to minus 32.
Joe Staton, Client Strategy Director GfK, says: “The cost crunch is really hitting the pockets of UK consumers and the headline confidence score has dropped to a near historic low. The scores looking at the next 12 months for our personal finances at -26 and the general economy at -55 are worse than the 2008 financial crash.
"The personal finance score for the next year is also worse than the initial Covid shock in 2020. When rising inflation and interest rates meet low growth and declining incomes, consumers will understandably be extremely cautious about any spending. There’s clear evidence that Brits are thinking twice about shopping, as seen in the tumbling Major Purchase Index – now is not considered to be a good time to buy," he added.
GfK's Major Purchase Index asls consumers: "‘In view of the general economic situation, do you think now is the right time for people to make major purchases such as furniture or electrical goods?"
This Index fell 8 points in April as compared to March and now stands at minus 32.
GfK said that UK consumer confidence was "in freefall as the Index crashes" and commented that "with little prospect of any economic relief on the horizon, we can only forecast further falls in the Index for the year ahead."
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