UK consumer confidence fell in September as all measures were down during the month, including major purchases.

According to the latest GfK Consumer Confidence Index, overall figures fell sharply to -20 in September. All measures were down in comparison to last month’s announcement.

The Major Purchase Index, which includes big ticket items such as furniture, is down ten points to -23; this is five points higher than this month last year.

The measure for the general economic situation of the country during the last 12 months is down two points at -37; this is 16 points higher than in September 2023. 

The index measuring changes in personal finances during the last year is down two points at -9; this is nine points better than September 2023.

The Savings Index has decreased ten points to +23; this is the same as this time last year.

Neil Bellamy, Consumer Insights Director, GfK, says: “Headline consumer confidence has recorded a big fall this month to -20, taking us back to a similar level seen at the beginning of this year. All five measures are down but there are major corrections in the outlook for our personal financial situation for the next 12 months (down nine points), our views on the general economy for the coming year (down 12 points), and the major purchase index (down ten points).

“These three measures are key forward-looking indicators so, despite stable inflation and the prospect of further cuts in the base interest rate, this is not encouraging news for the UK’s new government. Strong consumer confidence matters because it underpins economic growth and is a significant driver of shoppers’ willingness to spend.

“Following the withdrawal of the winter fuel payments, and clear warnings of further difficult decisions to come on tax, spending and welfare, consumers are nervously awaiting the Budget decisions on 30th October.”