Consumer confidence dips in November despite interest in major purchases

The GfK consumer confidence index dipped by one point to +1 during the month as three of the five measures used to calculate the index decreased and one remained unchanged.

The only measure to report an uplift was the Major Purchase Index, which increased two points to +9 during the month. That represented a nine point increase on November 2014.

Respondents’ confidence in their personal financial situation over the next 12 months remained unchanged at +6, up four points compared with the previous year.

However, consumers were less optimistic when assessing their personal financial situation over the previous 12 months. That measure dropped three points in November to +1.

Shoppers’ confidence was dented further by their perception of the general economic situation in the UK. Confidence in the economy over the past 12 months and upcoming year fell by one point and two points respectively during November.

Confidence in the state of the economy over the next 12 months plunged to -6, six points lower than in November 2014.

GfK head of market dynamics Joe Staton said: “From summer’s 15-year high, consumer confidence in the UK has continued to slide.

“Overall, despite the good news agenda of rock-bottom inflation, falling fuel prices and higher wage growth boosting spending power, confidence appears to be depressed by a combination of wider economic, political and social events.

“However, one area that continues to hold up is our expectation for our personal financial situation for the next 12 months. Shoppers also continue to tell us that now is the right time to make major purchases – such as furniture or electricals goods – with this indicator standing nearly 10 points higher than in November last year.”