New data reveals a worrying drop in UK consumer confidence as the public awaits next week's Autumn Budget and the crucial Black Friday sales period.
Key Findings from the GfK Index
The long-running GfK Consumer Confidence Index fell by two points to stand at minus 19 in November. This decline was seen across all five measures tracked by the survey, indicating a broad-based drop in public sentiment.
Neil Bellamy, consumer insights director at GfK, described the results as a "bleak set of results", pointing to the upcoming Labour Party Budget as a key factor.
Households Tighten Their Belts
Forward-looking measures for confidence in both personal finances and the general economy each fell by two points. While the personal finances measure shows a slight improvement compared to November 2024, expectations for the general economic situation over the next year have worsened significantly, now sitting at a concerning minus 32.
Perhaps most troubling for retailers is the three-point drop in the major purchase index to minus 15. GfK highlighted this as a particularly bad sign, suggesting households are reining in spending just as the vital holiday trading season begins.
Budget Pressure and Retail Warnings
Mr Bellamy stated that the Budget offers a "timely chance to provide the clarity and reassurance that consumers are struggling to find on their own."
Adding to the concerns, the British Retail Consortium (BRC) warned of the impact on the high street. BRC chief executive Helen Dickinson commented: "It has been a tumultuous month of Budget speculation and consumer confidence took a tumble."
She noted that earlier government hints about income tax rises had heightened public anxiety, and called on the Chancellor to deliver "a few rabbits from the Budget hat" to boost weak confidence. Delivering on promised business rates reforms is seen as essential to help control price rises and support struggling high streets.
Meanwhile, households are bracing for a expensive Christmas, reporting that they expect their spending on groceries to rise to the highest level since the survey began in 2024.
