Following several years of rising interest rates, rolling crises, and steadily rising inflation, GfK’s Consumer Confidence Index has begun to rebound.
However, it has dropped seven points since the end of August, to -20 overall, which the GfK claims is hardly “encouraging news” for the new government in the UK.
The decline has been attributed by some analysts to officials’ August 31 warnings about a “painful” budget.
Regarding consumers’ perceptions of the overall state of the economy and their likelihood of making large purchases, there were “major corrections”—double digit declines.
The future outlook for people’s own money has also declined, falling nine points to -3.
Rishi Sunak, the former prime minister, had already celebrated the improvement in this indicator as an indication of an improving economy.
The decline was unanticipated because it followed the Bank of England’s reduction in interest rates, which may have relieved some homeowners’ strain.
However, other indicators of consumer confidence have also declined.
