Consumer confidence improves as shoppers await Black Friday

GfK’s Consumer Confidence Index increased by two points during October, although it remained low overall at minus 17.

The modest growth was driven by an increase in the analysts’ major purchase marker – shoppers’ propensity to buy big-ticket items. The marker improved to minus 12, up nine points from this month last year.

Despite any perceived worries surrounding the upcoming autumn Budget, confidence in the general economic situation over the next year also increased, up two points to minus 10, down two points from this time last year. 

The personal finance forecast, which looks at the year ahead, fell one point to three, five points up on October last year. 

GfK consumer insights director Neil Bellamy said: “After several years of high inflation, savvy consumers have adapted their purchasing strategies to make the most of their money when discounts are most attractive.

“Buying sentiment is up on last month, with a four-point rise in our Major Purchase Index, which tracks consumers’ intentions to buy big-ticket items such as electrical goods and furniture. This uptick is partly driven by major retailer sales events held earlier in the month.

“Where possible, many now delay major purchases until one of these sales events – and the biggest of all is Black Friday, on November 28.

“Both consumers and UK retailers will be watching closely to see whether the Chancellor’s Budget, to be announced just two days before Black Friday, boosts or dampens spending during that crucial weekend.”