Consumer confidence slipped in October as the economic outlook remains uncertain and shoppers failed to show signs of ‘get-up-and-go.’
The long running GfK consumer confidence survey found the overall index fell to -10, down from -9 in September. Respondents’ view of the general economic situation over the next year deteriorated, as did their view of the situation over the past 12 months.
Joe Staton, head of market dynamics at GfK, warned about spiralling credit card use ahead of the crucial Christmas trading period.
“It’s no surprise that the Overall Index Score continues to bump along in negative territory this month. As concerns about the wider economic prospects for the UK economy dampen our outlook, consumers are showing no real ‘get-up-and-go’.
“Surging credit card use is fueling spending at the expense of our appetite for saving, which is growing at the slowest rate since the start of the 2008/2009 financial crisis. We are now entering the crucial Christmas trading season and it will be a testing time for retailers and consumers alike. Will consumers carry-on shopping or start to cut-back in the face of mounting pressure on our pockets?”