In Britain, the consumer confidence index in October rose for the first time in a year, analysts expected a decline
The consumer confidence index in the UK in October increased by 2 points and amounted to minus 47 points, according to GfK NOP Ltd.
This is the first increase in almost a year. Prior to that, he had updated record lows for several months in a row since the beginning of counting, that is, since 1974, according to data from GfK NOP Ltd.
At the same time, analysts on average expected further deterioration of the indicator – to minus 52 points, according to Trading Economics.
In October 2021, the indicator was minus 17 points.
Three of the five components of the confidence index this month increased compared to September.
The sub-index of consumers’ assessment of their financial situation over the past year did not change in October – minus 28 points. In the same month of 2021, it was minus 5 points.
The Personal Finance Expectations indicator for the next 12 months rose to minus 34 points from minus 40 points last month. A year ago, its value was plus 1 point.
The sub-index of consumer assessment of the general economic situation over the past year rose to minus 69 points compared to minus 72 points in September. At the same time, the assessment by the British of the general economic situation in the country in the next 12 months increased to minus 61 points from minus 68 points. In October last year, the first figure was minus 46 points, the second – minus 26 points.
Meanwhile, an indicator that assesses consumers’ willingness to spend money on large purchases fell to minus 41 this month from minus 38 in September. A year ago, it was at around minus 10 points.
“The three-point drop in purchases continues the downward trend that began in July 2021 and is of particular concern in the last quarter of the year, which many businesses rely on,” said Joe Staton, director of client strategies at GfK.
But, according to him, the biggest danger today is inflation, which is now at a maximum in the last 40 years. “Households are scared not only by rising energy and food prices, but also by the prospect of further increases in the base rate, which increases the cost of mortgages,” the expert said. “Now they face the possibility of higher taxes and possibly even austerity measures.”
More than 2,000 Britons aged 16 and over took part in the GfK study, which was commissioned by the European Commission from 3 to 13 October.