Consumer Confidence Index Rises Amid Cost-of-Living Concerns and Economic Outlook Improvements
The Consumer Confidence Index has increased by four points in September, although it remains at a subdued minus 21. (Photo: Reuters)
UK Consumer Confidence Index Rises Despite Cost of Living Concerns, Signals Positive Economic Outlook
According to Evening Standard article, Consumer confidence is on the upswing despite the backdrop of declining inflation, but a significant number of households are grappling with the ongoing challenges posed by the rising cost of living, according to findings from a recent survey. GfK’s well-established Consumer Confidence Index showed a notable increase of four points in September, yet it continues to hover at a rather subdued minus 21.
Projections for the broader UK economy for the next 12 months witnessed a robust surge of six points, reaching minus 30, a stark contrast to the same period last year when it stood 44 points lower. Confidence in personal financial outlook for the upcoming year inched up by a modest one-point increment to minus two, marking a substantial 38-point improvement compared to the previous year.
Consumer Confidence Index Sees Pre-Christmas Boost in Major Purchases Amidst Cost-of-Living Concerns
According to Independent article, as the countdown to Christmas begins with fewer than 100 shopping days remaining, retailers might take solace in the Consumer Confidence Index’s major purchase component. It witnessed a four-point boost, raising it to minus 20, representing an 18-point increase from the same period last year.
Joe Staton, GfK’s client strategy director, provided insights into the findings. He noted that while this month’s improved headline score is indeed encouraging, it’s essential to acknowledge that many households are still grappling with the cost-of-living crisis, and the overall economic conditions continue to present challenges. Despite the positive indicators, consumer confidence remains subdued, reflecting the persistently negative financial sentiment prevailing across the nation.