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September 27, 2019

UK consumer confidence grows for September 2019

UK consumer confidence has increased by two points for the month of September, according to German market research institute Growth from Knowledge’s (GfK) long-running Consumer Confidence Index.

By Rosie Lintott

UK consumer confidence has increased by two points for the month of September, according to German market research institute Growth from Knowledge’s (GfK) long-running Consumer Confidence Index.

Confidence increased to -12 this month, with confidence increasing across all five measures.

The personal financial situation index increased by three points to +2 over the last 12 months, making it one point higher than the same period last year, and is forecast to increase by two points to +4 over the next 12 months.

The general economic situation increased by two points during the last 12 months to -3. This was lower than September last year, with the major purchase index also up two points to +3, but still lower than the same period last year.

However, the savings index saw a big jump for this month increasing by two points to +23, making it ten points higher than the same time as last year.

GfK client strategy director Joe Staton said: “More mixed signals this month as consumers continue to feel less than positive about the state of their personal finances and the general economy. While all sub measures are higher, they are anaemic in the case of our purchase intentions and how we view our wallets- and the results on the wider economy are still depressed.

“Since the Brexit referendum, we have witnessed a long succession of negative overall index scores with the overall trend downwards. This month, British consumers appear to be treading water during this wait-and-see run-up to October 31.

“Confidence is an important indicator which typically increases as the economy expands and decreases when the economy contracts and so far, consumer confidence is holding up. We certainly have a long way to go to match the record low Index score of -39 witnessed during the early days of the last recession. But will it stay that way? You can almost sense people are keeping their fingers crossed.”