Gfk Consumer Confidence Drops Amid Covid-19 Resurgence

OCT GFK CONSUMER CONFIDENCE -31; SEP -25

OCT GFK ECONOMIC SITUATION NEXT 12M -50 VS -38 VS SEP

OCT GFK MAJOR PURCHASES INDEX -27 VS -21 SEP

OCT GFK SAVINGS INDEX +14 VS +20 SEP

Consumer sentiment slumped 6pt in Oct amid a resurgence of Covid-19 cases in the UK. The indicator dropped to the lowest level since May, led by a sharp decline of household's assessment of the general economic situation over the next 12 months. Consumer's concerns regarding their personal financial situation and the state of the economy led to a sharp fall of the major purchases index by 6pt to -50. The rising concerns regarding the labour market dampens the outlook, despite low inflation and interest rates. The survey data was collected before the reintroduction of stricter social distancing measures and the end of the furlough scheme, hence there is a severe downside risk for the months ahead.