Consumer confidence fell to six-month low in October

As many predicted, the direct result of the government’s savage austerity measures, saw the UK economy suffer a double dip recession. But how many foresaw a triple dip; it’s now looking a distinct possibility. The cuts are hurting; they are not working. Whilst people are losing their jobs; seeing their pay frozen or cut and going hungry and cold, the government pontificates about “handing £58bn of Whitehall cash to city-based engines of growth, co-ordinated by businesses and local councils” whilst still advocating their deficit reduction strategies and the destruction of the public sector / services, the NHS and the Welfare State.

Below is an article from The Retail Bulletin

UK consumer confidence slipped to a six month low in October as households became more pessimistic about their financial situation over the coming 12 months according to a survey by GfK NOP.

The GfK Consumer Confidence Index dipped to -30 in the month from -28 in September. This was the lowest reading since April.

While the index measuring changes in personal finances during the last 12 months decreased three points to -24, the forecast for households’ expectations for the next twelve months fell five points to -13. This is three points lower than October 2011. The survey also revealed a reluctance to invest in major purchases with the index dropping two points to -33 in the month, one point lower than this time last year.

The index measuring the expectation for the general economic situation over the next 12 months decreased to -29, two points higher than October 2011. The ‘now is a good time to save’ index increased one point to -17.

Nick Moon, managing director of social research at GfK, said: “Just as the economy moves out of recession consumer confidence dips again. While we are not quite back to the levels of this time last year, the Index has not been this low in six months.

“While the Olympics are thought to have boosted GDP in the last quarter, the late Summer boost in consumer sentiment has now faded. The government will be concerned that the economic bounce will follow a similar path and deflate during the Autumn.

“The fragility of the recovery is underlined by the fact that people are more worried about their own financial situation over the next 12 months. This certainly doesn’t suggest there will be a spending boom on the back of the official emergence from recession.”

The GfK survey was conducted amongst a sample of 2,004 individuals aged over the age of 16 between 5 and 14 October 2012.