Consumer confidence dips in October

According to the GfK Consumer Confidence Index, sentiment fell two points to -30 – the lowest level in six months.

GfK managing director of social research Nick Moon said: “Just as the economy moves out of recession consumer confidence dips again. While we are not quite back to the levels of this time last year, the Index has not been this low in six months.

“While the Olympics are thought to have boosted GDP in the last quarter, the late summer boost in consumer sentiment has now faded. The Government will be concerned that the economic bounce will follow a similar path and deflate during the autumn.”

The survey found that consumers are more worried about their personal finances over the next 12 months than they were a year ago, with the Index dropping three points to -13.

The major purchases measure has dropped one point in October to -33, year on year.

“The fragility of the recovery is underlined by the fact that people are more worried about their own financial situation over the next 12 months,” said Moon. “This certainly doesn’t suggest there will be a spending boom on the back of the official emergence from recession.”