Consumers "Despondent" Ahead of Budget

Image © Adobe Images

Consumer confidence fell one point this month to -21, according to the country's leading barometer of sentiment.

GfK's headline consumer confidence measure by one point to reach its lowest level since March this year.

"As the Budget statement looms, consumers are in a despondent mood despite a fall in the headline rate of inflation," says Neil Bellamy, Consumer Insights Director at GfK.

GfK said two other measures, the "personal financial situation over the last 12 months" and "general economic situation over the next 12 months" fell back by a point.

"The largest drop though was in our view of the general economic situation over the last 12 months, down five points to -42," says Bellamy.

On the plus side, the major purchase index rose two points and future personal financial expectations by one point.

"This month’s Consumer Confidence Barometer paints a picture of people holding their breath to see what’s in store for them on 30th October," says Bellamy.

Subdued consumer confidence is also reflected in waning business confidence, as reported on Thursday by the PMI survey for October.

The survey of business activity revealed "business activity growth has slumped to its lowest for nearly a year in October as gloomy government rhetoric and uncertainty ahead of the Budget has dampened business confidence and spending. Companies await clarity on government policy."