Consumer confidence falls as households nervously await 'painful' Autumn Budet

GfK's Consumer Confidence Index fell 7 points successful September to minus 20, with important drops successful predictions for idiosyncratic finances and the wide system implicit the coming year

Consumer assurance has tfallen sharply, successful what is being described arsenic "not encouraging news" for the Government.

Households are "nervously" awaiting adjacent month's autumn Budget, according to a long-standing survey. The GfK’s Consumer Confidence Index dropped 7 points successful September to minus 20, with important declines successful predictions for idiosyncratic finances and the wide system implicit the coming year.

Expectations for the wide system implicit the adjacent 12 months fell by 12 points to minus 27, portion the forecast for idiosyncratic finances is down 9 points to minus three. The large acquisition index, which indicates assurance successful buying large summons items, is down 10 points connected past period to minus 23, 5 points higher than a twelvemonth ago.

GfK stated: “These 3 measures are cardinal forward-looking indicators truthful contempt unchangeable ostentation and the imaginable of further cuts successful the basal involvement rate, this is not encouraging quality for the UK’s caller Government."

Neil Bellamy, user insights manager astatine GfK, said: “Strong user assurance matters due to the fact that it underpins economical maturation and is simply a important operator of shoppers’ willingness to spend. Following the withdrawal of the wintertime substance payments, and wide warnings of further hard decisions to travel connected tax, spending and welfare, consumers are nervously awaiting the Budget decisions connected October 30."

The Autumn Budget volition beryllium "painful" and the authorities volition person to large demands of the public, Sir Keir Starmer has warned.