Consumer confidence drastically decreased due to coronavirus

Interim data gathered by GfK from March 16 to 27 shows a decrease of 25 percentage points in consumer confidence.

Overall consumer confidence for the period fell to -34, down from -9 in the middle of March and -7 in February, with all measures showing a decrease.

Indices for participants’ personal financial situation over the last year fell 6 percentage points to -4, while concerns over personal finances for the coming 12 months plummeted 20 percentage points to -17.

In terms of the general economic situation over the next year, GfK reported a 29 percentage point fall to -56.

In terms of its major purchase index, GfK reported a 50 percentage point fall to -52, down from just -2 in the middle of the month.

GfK client strategy director Joe Stanton said: “Our Covid-19 flash report shows a dramatic result with consumer confidence falling off the cliff in the last two weeks of March. The last time we saw such a decline was during the 2008 economic downturn.

“Our falling confidence in our personal financial situation and the wider economy reflects the new concern for many across the UK. Despite record grocery sales, and recent peaks for purchases of freezers, TVs and home office equipment as people prepared for a long period in the home, the major purchase index is down 50 points – a stark picture for some parts of the retail industry in the short to medium term.”