Consumer confidence hits new lows
August 19, 2022
UK consumer confidence has hit a new record low and furnishing sales declined as analysts report "acute concerns in the face of the soaring cost of living and bleak economic prospects".
GfK’s long-running Consumer Confidence Index decreased three points in August to -44. Its Major Purchase Index, which reflects attitudes to big-ticket items such as furniture and flooring, fell four points to minus 38.
And the latest data from the Office for National Statistics (ONS) showed sales in the home furnishing category slumped 8.8% in August. Floorcovering retail sales were down month-on-month by 19.7% to £199.2m from £248.3m, but compared to the same time last year, sales increased by 15.8% from £171.9m.
Joe Staton, Client Strategy Director, GfK says: ""These findings point to a sense of capitulation, of financial events moving far beyond the control of ordinary people.
"With headline after headline revealing record inflation eroding household buying power, the strain on the personal finances of many in the UK is alarming," he says. "Just making ends meet has become a nightmare and the crisis of confidence will only worsen with the darkening days of autumn and the colder months of winter.”
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