Fears for consumer rebound as people lose their nerve over personal finances

Time 10 months ago

People are losing confidence over personal finances, a report has found.

Research company GfK (Growth from Knowledge) asked some 2,000 people between November 2 and 13 how they felt about their finances and the wider economy.

Consumer confidence fell overall by two points to minus 33 versus October’s findings.

People’s feelings about their financial situation in the next 12 months dropped by five points to minus five from zero in October.

Attitudes towards personal finances over the past year sank from minus nine in October to minus 16.

Meanwhile, consumer confidence in making major purchases also became increasingly negative, dropping to minus 28 in November from minus 27 in October.

Views on the wider economy were unchanged against October, with readings staying negative.

Joe Staton, client strategy director at GfK, said: ‘People are clearly losing their nerve regarding their personal finances, with scores for the last 12 months and the year to come sharply down by seven points and five points respectively.

‘This will deal a blow to any future rebound, because bullish consumer spending fuels the UK economy and low confidence is the enemy of recovery.

‘The second lockdown [in England] couldn’t have come at a worse time for the UK’s high street retailers, and it’s no surprise that our major purchase sub-measure is once again mired deep in negative territory.

‘On all fronts, economic headwinds still outnumber tailwinds, sadly, and consumers can be excused for showing little in the way of Christmas cheer.’

John Bowman's avatar

John has been with Car Dealer since 2013 after spending 25 years in the newspaper industry as a reporter then a sub-editor/assistant chief sub-editor on regional and national titles. John is chief sub-editor in the editorial department, working on Car Dealer, as well as handling social media.

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