Consumer confidence has dropped two points, driven by the sharp decline in the value of the pound.

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Gfk’s overall index score dropped to -3

While Gfk’s overall index score dropped to -3, two of the measures that it comprises rose.

The personal financial situation index for the next 12 months dropped by one point to +6, the same level as last year. The index for the last 12 months rose one point to +3, one point lower than at this time last year.

The general economic situation index for the next 12 months dropped eight points to -17, 13 points lower than last year. The index for the last 12 months dropped three points to -19, 14 points lower than last year.

However, the major purchase index increased this month, up five points to +14, seven points higher than last year, and the savings index stayed level at -9.

‘Right time to spend’

Head of market dynamics Joe Staton said: “Declining optimism about economic prospects for the wider UK economy has depressed the consumer mood this month.

“Despite the continuing feel-good factor arising from persistent low interest and inflation rates, sterling’s sharp decline is arguably stoking fears that price rises will hit UK living standards hard next year.

“This month also continues the upward trend on spending intentions with high levels of agreement in the Major Purchase Index. This shows that many consumers agree now is the right time for people to spend.

“So, with Black Friday approaching and Christmas trading already under way, will the remainder of 2016 see halcyon days for retailing? Are we gearing up to shop now and pay later amid concerns over rising high-street prices?”