LONDON: UK consumer confidence slumped to a new low in September as a tightening squeeze on living costs made people much more pessimistic about their own finances.
Market research firm GfK Ltd said its measure of sentiment fell five points to minus 49, the lowest since it started the survey in 1974. Economists forecast a reading of minus 42.
With inflation close to 10% and energy bills set to rise again in October, household spending power is falling at its quickest pace in decades. Prime Minister Liz Truss’s government on Friday will set out measures to boost growth, starting with tax cuts for people and businesses.
“Consumers are buckling under the pressure of the UK’s growing cost-of-living crisis,” said Joe Staton, client strategy director at GfK. “They are asking themselves when and how the situation will improve.”
The survey also showed:
- An index tracking how consumers see their financial situation in the coming year dropped 9 points to minus 40
- An 8-point decline to minus 68 was recorded when people were asked about the general economic outlook
- The major purchases index was unchanged at minus 38. That’s 32 points below where it was a year ago
- The survey of 2,000 people aged over 16 was conducted from Sept 1-14, with no significant difference in responses after the death of Queen Elizabeth II on Sept 8