Consumer confidence edges up in September
Consumer confidence grew slightly this month but remained negative overall as uncertainty continued in the run up to the 31 October Brexit deadline date.
Despite the two point increase, consumer confidence was still minus 12 points in September compared to a score of minus nine in the same month last year.
Read more: UK consumer confidence staggers in the face of no-deal Brexit
Consumers were more positive about their personal financial situations compared to August as the measure increased by three points to a score of two, which is one point higher than September 2018.
Expectations for the general economic situation of the UK over the next 12 months increased three points to minus 35 – four points lower than this time last year – according to the latest Consumer Confidence Index by market research firm GfK.
Consumers were also slightly more confident in the UK economy over the past 12 months as the measure increased by two points, however the outlook was still down four points on September 2018.
Joe Staton, client strategy director at GfK, said British consumers were “treading water” during the ongoing uncertainty as the latest Brexit deadline approaches at the end of next month.
“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,” he said.
“We certainly have a long way to go to match the record low headline score of minus 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.”
The savings index, which measures whether consumers believe the general economic situation is a good time to save, was up two points to 23 – an increase of 10 points.
Shoppers were also more confident about making major purchases in September, as that measure increased two points on last month to a score of three.
Read more: UK consumer confidence slumps in June
Staton added: “Yes, all sub measures are higher, but they are anaemic in the case of our purchase intentions and how we view our wallets, while the results on the wider economy are still depressed.
“This month, British consumers appear to be treading water during this wait-and-see run-up to 31 October.”
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