Consumer confidence fell to a new record low in August in the face of soaring cost of living and bleak economic prospects, according to new figures from data and intelligence company GfK.
GfK’s long-running Consumer Confidence Index decreased three points in August to -44. All five measures of confidence – personal finance, general economic situation, major purchases, savings, and expectations for the general economic situation over the coming 12 months – were down in August in comparison to the previous announcement on 22 July.
Joe Staton, Client Strategy Director at GfK, said: “The Overall Index Score dropped three points in August to -44, the lowest since records began in 1974. All measures fell, reflecting acute concerns as the cost of living soars. A sense of exasperation about the UK’s economy is the biggest driver of these findings. Our sub-measure on the general economy over the past year has decreased month-on-month since December 2021 – that’s eight months in a row.
“A similar consistent sharp decline since December 2021 is evident in how consumers see the economy a year ahead and this month’s score of -60 sets a new record. These findings point to a sense of capitulation, of financial events moving far beyond the control of ordinary people. With headline after headline revealing record inflation eroding household buying power, the strain on the personal finances of many in the UK is alarming. Just making ends meet has become a nightmare and the crisis of confidence will only worsen with the darkening days of autumn and the colder months of winter.”
GfK’s Consumer Confidence Index is conducted among a sample of 2,000 individuals aged 16 years old and over.
