Confidence in personal finances declines but consumers are in defiant mood
GfK’s long-running Consumer Confidence Index increased by one point to – 9 in September.
Joe Staton, Head of Market Dynamics at GfK, says:
“Confidence in personal finances, both looking back and ahead a year, has slipped this month but retail sales in the UK continue to grow despite non-food prices increasing at their highest rate for 25 years. Consumers appear to be in a mixed mood – with some confidence measures up and others down – yet there’s a strong note of defiance. Many commentators expected shoppers to cut back on spending thanks to the lower purchasing power that arises from higher inflation and weak wage growth. But consumers are still spending out there, and have repeatedly defied predictions of a downturn since last year’s Brexit vote, partly by running down savings and/or borrowing more. Indeed, the major purchase indicator has crept up a second month in a row and the savings index has sagged. It’s live now, pay later. This defiant consumer mood seems to be the ‘new normal’. But how long can it last?”
UK Consumer Confidence Measures – September 2017
The Overall Index Score in September is – 9. Both measures for Personal Financial Situation decreased, while the two measures for General Economic Situation as well as the Major Purchase Index increased.