‘Double dip’ threat for consumer confidence as concerns about finances worsen

Consumer confidence is heading for a double dip as concerns about the state of both personal finances and the wider economy in the coming months deepen, according to an index.

The index, compiled by GfK (Growth from Knowledge), found that perceptions about personal finances both in the past year and the 12 months ahead deteriorated in October.

Attitudes towards the general economic situation over the past and coming 12 months also worsened.

The overall index score deteriorated to minus 31, from minus 25 in September.

Minus scores indicate that the situation is getting worse rather than improving.

Joe Staton, client strategy director at GfK, said: “There’s a worrying threat of a double dip in consumer confidence as concerns for our personal financial situation and even deeper fears over the state of the UK economy drag the index down six points this month.

“Despite low inflation and rock-bottom interest rates, a buoyant housing market and a raft of Government financial stimulus measures, the prospect of rising unemployment is severely depressing our outlook.”

He said the findings were collected before the latest round of Covid-19 restrictions came into force, adding: “Expect the autumn chill to give way to much stormier conditions.”

– Some 2,000 people were surveyed.