Consumer confidence slumped in October as optimism about the general economic backdrop as well as personal finances waned.
The YouGov/Cebr confidence index fell by 4.6 points over the month to 109.5. It was the largest monthly fall since July 2010 and the index’s lowest level since December 2013.
Stephen Harmstonof YouGov, said the survey indicated a gloomy consumer backdrop for the crucial run-up to Christmas. “These figures make grim reading in the run up to Christmas and unless something dramatic happens in the next month the festive season could be a very tricky one for retailers.
“The fall is so great because confidence has weakened across the board - all eight measures we use to gauge economic optimism fell, indicating just how fragile the recovery is. While the economic figures paint a rosy picture, consumers are not yet feeling the recovery in their wallets.”
Economic recovery continued in the third quarter, but growth slowed to 0.7% from 0.9% in the second quarter. Despite a backdrop of growth and falling unemployment, wage growth has been unexpectedly weak, lagging inflation for the majority of the time since 2008 and leaving household budgets under pressure.
Consumers surveyed by YouGov/Cebr were feeling less confident this month about their job security, business prospects at their place of work, the value of their home, and household finances.
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