Consumer confidence has dropped in September as people failed to feel better off despite the UK’s growth in GDP, according to GfK.
The GfK Consumer Confidence Index decreased two points this month to -1 as confidence dropped across all categories apart from the index that measures major purchases.
GfK managing director of social research Nick Moon said: “Last month, I speculated that we may be in a new period of stasis for the index, and this month certainly fits into that pattern. There have now been five consecutive months where the index has been at 0 plus or -2.”
Moon points out there is stasis despite macro-economic indicators improving during the period.
He said: “One possible explanation for this positivity no longer being mirrored in the index is that many people are not themselves feeling any better off despite the growth in GDP, and this may be tempering the impact of positive media coverage of the economy.”
The index measuring changes in personal finances during the last 12 months has decreased one point this month to -8, but has improved by eight points year on year.
Consumers are also more pessimistic about the future with the forecast for personal finances over the next 12 months has decreasing four points to 1, which is the same level it was at last year.