Published on September 30th, 2020 | by The GC Team0
Confident consumers intent on spending
Adverse economic headwinds, the threat of a second lockdown and concerns arising about a potential no-deal Brexit have done little so far to dampen steadying consumer confidence in the UK, which has inched forward for nearly four months in a row.
GfK’s Consumer Confidence Index increased two points month-on-month to -25 in September – a remarkable recovery from the near-historic low of -36 in the researcher’s early June ‘flash’ report.
Confidence in the general economic situation over the next 12 months and consumers’ appetite for major purchases were the biggest winners, both rising four points to -38 and -21 respectively.
Looking ahead over the rest of 2020 and beyond, Joe Staton, Client Strategy Director GfK, says we should keep an eye on the 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.”
Staton added, however, that consumers are “jittery” as stock markets and the UK government put the brakes back on – “and there may be more to come.”
His conclusion: “Only an unbridled optimist will bet on confidence climbing further.”