Consumer confidence climbs in September but new restrictions loom

Shopper sentiment rose two points to -25 during September, marking the first time the measure has improved since June.

Concerns over the state of the UK economy over the next 12 months jumped four points to -38, according to the GfK Consumer Confidence Index – just three points lower than the same month last year.

People’s thoughts about their personal financial situation over the last 12 months dropped two points to -7, but their feelings over the coming year stayed the same at +1.

The major purchase index also increased by four points to -21, 24 points lower than the same time last year, while the savings index dropped one point to +20.

GfK client strategy director Joe Staton said: “Despite unfavourable double-dip economic headwinds and the threat of a second lockdown, we report an uptick for September as the overall index score climbs to -25 from the near-historic low of -36 in our early June ‘flash’.

“This means consumer confidence has crept forward for nearly four months now, but can this fragile improvement last or is it about to come to a grinding halt?

“Looking ahead over the rest of 2020 and beyond, keep an eye on our personal finance measure for the coming year and the major purchase intentions of consumers.

“These reflect how much we intend to spend, shop or invest – all vital considerations for retailers as we enter the Golden Quarter in the run-up to Christmas.”