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Consumer Confidence Remains Stable
Research carried out by Martin Hamblin GfK on behalf of the European Commission shows that the overall picture for consumer confidence in the UK has changed little this month.
However, where the figures have moved, these are for the better rather than the worse. A poor climate for saving suggests that consumers will be out there spending their money - especially as people feel prices are not increasing very much.
Overall, the Consumer Confidence Index figure has risen by 1 point this month and currently stands at +2. Four of the five key measures show small improvements this month, the other one remaining the same.
- Perception of the development of personal finances over the last 12 months has increased by 2 points, registering a score of +5. This score is identical to that attained this time last year.
- Expectations for the future of personal finances remain the same as last month and stands at +13. The result for this measure is up 4 points year on year.
- Perceptions of the development of the general economic situation have increased by 2 points this month and currently register a score of -21. Again for the second month running, 46% of those questioned believe that the general economic situation has worsened over the past 12 months.
- Expectations for the future of the general economic situation have risen by one point this month, and currently stand at -10. This measure is up 16 points year on year (last year still recovering from the effects of September 11th).
- A perception of the benefits of making major purchases in the current climate has risen 2 points in October. This measure is up 6 points year on year. This suggests that consumers believe that now is a good time to buy.
This month consumer perceptions of the cost of living for the next 12 months dropped by 5 points to 68. Consumers feel that prices are set to rise at a slower rate than has been observed over the last 12 months.
Again, for a further month, consumer perceptions of the current saving climate remained at an all time low. Therefore the overall mean score still stands at -10, with 51% of those questioned believing that it is currently an unfavourable time to save.
The survey was conducted amongst a sample of 2007 individuals aged 16+. Quotas were imposed on age, sex, region, social class and income to ensure the final sample was representative of the UK population. Interviewing was conducted from 4th - 21st November. The figures contained within the Consumer Confidence Barometer have an estimated margin of error of +/-2%
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