UK consumer confidence falls in October as cost-of-living pressure mounts

The overall index score for consumer confidence saw a dramatic fall of nine points to -30 in October, bringing the overall score back to the same level as July this year, according to the latest GfK Consumer Confidence Index.

All five indexes measuring consumer confidence were down compared with last month as customers face fierce headwinds during the cost-of-living crisis.

The index measuring consumers’ confidence in their personal financial situation over the past 12 months fell six points to -19. Looking ahead to the next 12 months, it decreased six points to -8.

Consumer confidence in the general economic situation over the past 12 months decreased seven points to -54 and fell eight points to -32 when looking at the next 12 months.

The major purchase index also saw a 14-point fall to -24, while the savings index fell two points to 25 – 12 points higher than this time last year. 

Joe Staton, client strategy director for GfK, said: “UK consumer confidence has fallen nine points this month to -30 and takes us back to where we were in July this year.

“This sharp fall underlines that the cost-of-living crisis, and simply not having enough money to make ends meet, are still exerting acute pressure for many consumers.

“The fierce headwinds of meeting the accelerating costs of heating our homes, filling our petrol tanks, coping with surging mortgage and rental rates, a slowing jobs market and now the uncertainties posed by conflict in the Middle East are all contributing to this growing unease.

“The timing of the sharp drop in our major purchase measure – down 14 points – will concern retailers across the land in the run-up to Christmas.

“The volatility we are seeing in consumer confidence is a sure sign of a depressed economic mood and there’s no immediate prospect of any improvement.”