Consumer confidence has seen a minor decline, affecting economic sentiment.
- The Consumer Confidence Index dropped to -21 in October, mirroring levels from March.
- Personal finance expectations over the next year improved to -1 but remain volatile.
- General economic sentiment has worsened, although showing slight improvement from last year.
- Major purchase confidence rose, yet concerns persist as the Budget approaches.
The latest figures from GfK highlight a subtle decline in consumer confidence, with the index dropping by one point to -21 in October. This decline takes the index back to the levels observed in March, reflecting ongoing concern about the economic climate.
Expectations for personal finances in the upcoming 12 months have seen a slight uptick, registering an increase of one point to -1. This marks a substantial six-point improvement compared to the same time last year, yet volatility remains due to the broader economic uncertainties.
In contrast, consumer sentiment regarding the country’s general economic situation over the last 12 months has deteriorated, dropping five points to -42. Despite this decline, the metric is notably 12 points higher than it was in June 2022, indicating gradual recovery over the past year.
Looking ahead, the expectations for the general economic situation show a minor decline, dropping by one point to -28. This figure, while negative, is still four points better than it was a year ago, suggesting cautious optimism among consumers.
On a brighter note, the index for major purchases has increased slightly by two points to -21, representing a 13-point increase compared to this time last year. This increase suggests a degree of resilience among consumers in their willingness to make substantial expenditures despite current uncertainties.
Overall, while consumer confidence demonstrates resilience in certain aspects, significant challenges remain as the national Budget approaches.
