Consumer confidence continues to decline, reflecting ‘real anxieties’

Consumer confidence dropped by two points in September despite a decrease in interest rates in August, according to GfK’s Consumer Confidence Barometer.  

The overall index score, which brings together five different measures of consumer confidence, dropped to –19 in September. All measures were down in comparison to last month.  

“With consumer confidence sliding and households bracing for potential tax rises, marketers can’t afford to ignore the continuing sombre mood,” Neil Bellamy, consumer insights director at GfK, tells Marketing Week.  

Breaking down the five measures of consumer confidence, people’s view of their personal finance situation over the last 12 months declined by three points to –7, while their confidence for the next 12 months dropped by one to a positive four.  

Consumer confidence in the last 12 months dropped by three points to –45, seven points lower than this time a year ago. Confidence in the general economic situation over the next 12 months decreased two points to –32. This is nine points lower than last September.  

The major purchase index – which indicates people’s likelihood to buy big-ticket items – dropped three points to –16 but is up from –23 this time a year ago.  

“This month’s two-point fall in confidence might not sound dramatic, but it reflects real anxieties about the cost of living, which in turn makes consumers behave more cautiously,” adds Bellamy, urging marketers to show they’re on customers’ sides.  

“Experienced marketers have been here before and their advice will be to think value, consistency and empathy in messaging, especially as we head towards the festive season. Be the brand that people trust to deliver every time, without cutting corners on quality.”