Consumer confidence falls ahead of imminent Budget

All five measures were down, according to the GfK consumer confidence survey, as the company described this as a “worsening picture.”

The overall index score fell by two points to -19 in November. Consumer confidence in personal finances also fell two points to -7 and is two points higher than November 2024.

The forecast for this index over the next 12 months is down two points to 1, but it’s a two-point improvement compared to this time last year.

The general economic situation declined one point to -43 since last year, a four point decline from November 2024. The Major Purchase Index fell three points to -15.

GfK consumer insights director Neil Bellamy said: “This is a bleak set of results as we head towards next week’s Budget. A fall across all five measures suggests the public is bracing for difficult news, with little in the current climate to lift expectations. 

“The continued erosion of confidence is evident in the forward-looking measures for both Personal Financial Situation and the General Economic Situation, which are each down by two points. 

“The three-point drop in the Major Purchase Index is also troubling at this time of year, suggesting households are tightening their grip just as retailers move into a crucial trading period. In such conditions, the Budget offers a timely chance to provide the clarity and reassurance that consumers are struggling to find on their own.”