UK Consumer Confidence Hits All-Time Low as Inflation Bites
- Consumer confidence hits record low of -44 in August
- All five measures of GfK’s Consumer Confidence Index decreased compared to July announcement
- Personal finances over the last 12 months fell two points to -25, 25 points worse than August 2021
- General economic situation in the past 12 months dropped two points to -68, a decrease of 26 points from August 2021
- GfK expects general economic situation over the next 12 months to deteriorate with a three-point drop to -60, 54 points lower than August 2021
- Joe Staton, client strategy director at GfK, says the crisis of confidence will worsen in autumn and winter due to record inflation eroding household buying power
Consumer confidence in the UK has hit an all-time low, with GfK’s Consumer Confidence Index falling three points to -44 in August. This is the lowest since records began in 1974. All five measures of the index have decreased compared to the July announcement. Personal finances over the last 12 months fell two points to -25, which is 25 points worse than August 2021. The general economic situation for the past 12 months dropped two points to -68, a decrease of 26 points from August 2021. GfK expects the general economic situation over the next 12 months to deteriorate with a three-point drop to -60, which would be 54 points lower than August 2021. Joe Staton, client strategy director at GfK, stated that the sense of capitulation is due to financial events moving beyond ordinary people’s control and the strain on personal finances in the UK is alarming.
Factuality Level: 10
Factuality Justification: The article provides accurate information about the decline in GfK’s Consumer Confidence Index and its various measures, attributing it to the soaring cost of living and economic concerns. It includes relevant quotes from an expert source and presents a clear picture of the current situation without any unnecessary details or personal opinions.
Noise Level: 3
Noise Justification: The article provides relevant information about the decline in consumer confidence due to rising costs of living and economic concerns. It includes data from GfK’s Consumer Confidence Index and quotes from an expert on the situation. However, it could benefit from more analysis or context on why these trends are occurring and potential solutions for addressing them.
Financial Relevance: Yes
Financial Markets Impacted: The article discusses the impact on consumer confidence due to rising cost of living and its effect on personal finances, which can influence spending habits and overall economic outlook.
Financial Rating Justification: The article focuses on the decline in GfK’s Consumer Confidence Index, reflecting concerns over the soaring cost of living and its potential impact on consumer behavior and the economy. This can affect companies and financial markets as it may lead to reduced spending and slower growth.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the text, only a discussion of economic concerns and declining consumer confidence due to inflation and rising costs of living.
www.retailsector.co.uk