Consumers ‘despondent’ ahead of Budget

Consumers' forecast for personal finances over the next 12 months – seen as a key indicator for spending – increased by one point to -1, which is six points higher than this time last year.

The index measuring changes in personal finance over the last 12 months was down by one point to -10, which is nine points above October 2023’s figures.

GFK also looked into consumer sentiment about the general economic situation for the country during the last 12 months. This metric was five points lower at -42, which is 12 points higher than in June 2022.

Expectations for the general economic situation over the next 12 months have fallen by one point to -28, which is four points better than a year ago. The major purchase index has increased by two points to -21, which is 13 points higher than this time last year.

Neil Bellamy, consumer insights director of GFK, said: "Consumer confidence fell one point this month to -21, taking the score back down to the level last seen in March this year. Also falling one point are both personal financial situation over the last 12 months and general economic situation over the next 12 months.

"The largest drop, though, was in our view of the general economic situation over the last 12 months, down five points to -42. On the plus side, the major purchase index rose two points and future personal financial expectations by one point. As the Budget statement looms, consumers are in a despondent mood despite a fall in the headline rate of inflation."