UK consumers’ confidence hit by school return

 
Joseph Millis
Consumer confidence hit by back-to-school blues (Source: Getty)
Consumer confidence in Britain has taken a knock in the past month due to back-to-school blues, according to German-based market research company GfK.

The index, released today, measuring changes in personal finances during the past 12 months has decreased by two points this month to one, but still nine points higher than September 2014.

The forecast for personal finances over the next 12 months has fallen one point to six this month – five points higher than September 2014.

The measure for the general economic situation of the country during the past 12 months has decreased six points this month to minus three – one point higher than September 2014.

Expectations for the general economic situation over the coming year have decreased five points to minus two. This is six points lower than this time last year.

The Major Purchase Index has decreased three points this month to 14, making it 14 points higher than this time last year.

And the Savings Index has increased one point to three, which is 12 points higher than September 2014.

Joe Staton, head of market dynamics at GfK, said: “Consumers are in a depressed ‘back-to-school’ mood this month with a dip in people feeling good about the wider economy and their own personal economic circumstances.

“Across the board, all components of the index have dropped despite a positive UK news agenda of continued near-zero inflation, low interest rates and levels of unemployment, UK wage growth at a six-year high and the ever increasing value of our homes.

“The biggest decrease in the index this month comes in how we think the general economic situation in this country has changed over the past 12 months [minus six points] and our expectations for the general economic situation in this country over the next 12 months [minus five points].”

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