2021.10.2205:58:00UTC+00UK GfK Consumer Confidence Weakens For Third Straight Month

UK consumer confidence weakened for the third straight month in October, survey results from the market research group GfK showed on Friday.

The consumer confidence index fell to -17 in October from -13 in September. The expected reading was -16.

All the sub-indices of confidence index declined in October from the previous month. The survey was conducted among a sample of 2,000 individuals between October 1 and 13.

The index measuring changes in past personal finances dropped one point to -5. Similarly, the forecast for personal finances over the next twelve months fell four points to +1.

The measure for the general economic situation over the last twelve months was down three points at -46. At the same time, expectations for the general economic situation over the coming year decreased ten points to -26.

The Major Purchase Index declined four points to -10 in October. Meanwhile, the Savings Index stayed unchanged at +22 in October.

"Against a backdrop of cheerless domestic news - fuel and food shortages, surging inflation squeezing household budgets, the likelihood of interest rate rises impacting the cost of borrowing, and climbing Covid rates - it is not surprising that consumers are feeling down-in-the mouth about the chilly winter months ahead," Joe Staton, client strategy director GfK, said.

Worryingly for British retailing in the run-up to Christmas, there is a further decline in the intention to make major purchases. The financial mood of the nation has changed and consumers could do with some strong tonic to lift their spirits, Staton added.