Consumer confidence increased marginally in October as shoppers look to the Black Friday sales event – despite nervousness around the upcoming Budget, figures show.
GfK’s long-running Consumer Confidence Index increased by two points – although it still languishes at minus 17.
The increase was largely driven by a four-point rise in the index’s major purchase marker, an indicator of confidence in buying big-ticket items, to minus 12 – a nine-point improvement on last October.
Expectations for the general economic situation over the next 12 months also increased, by two points to minus 30, but marking a two-point decline on a year ago.
The forecast for personal finances over the next 12 months fell one point to positive three – five points better than this time last year.
Neil Bellamy, consumer insights director at GfK, said: “After several years of high inflation, savvy consumers have adapted their purchasing strategies to make the most of their money when discounts are most attractive.
“Where possible, many now delay major purchases until one of these sales events – and the biggest of all is Black Friday, on November 28.
“Both consumers and UK retailers will be watching closely to see whether the Chancellor’s Budget, to be announced just two days before Black Friday, boosts or dampens spending during that crucial weekend.”
