Published on October 22nd, 2021 | by The GC Team0
Mood of the nation takes a turn for the worse
The financial pulse of the nation has dropped for the third consecutive month as the framework of the economy crumbles under the strain of rising prices, supply problems and escalating cases of Covid-19.
GfK’s monthly Consumer Confidence Index fell four points to -17 during October with all five sub-measures used to calculate the score declining for the second month in a row and the outlook for the future economy collapsing 10 points in each.
Joe Staton, Client Strategy Director GfK, said all the vital signs are weakening after six months of robust recovery in the first half of 2021.
“Against a backdrop of cheerless domestic news – fuel and food shortages, surging inflation squeezing household budgets, the likelihood of interest rate rises impacting the cost of borrowing, and climbing Covid rates – it is not surprising that consumers are feeling down-in-the-mouth about the chilly winter months ahead,” he said.
Worryingly for the retail sector in the run up to Christmas is the further decline in the Major Purchase Index, which measures consumers’ appetite for spending on big-ticket items. The Index score fell four points in October to -10, following a three-point drop in September.
“The financial mood of the nation has changed and consumers could do with some strong tonic to lift their spirits,” Staton commented.
In other news concerning the UK economy, the Office for National Statistics today said September retail sales recorded the longest consecutive fall since 1996, when records began.