September consumer confidence up

30/09/2008

Consumer confidence was up slightly in September but was affected by the financial upheavals, a survey shows.

The GfK NOP index for September rose four points from August to -32, although this is still 25 points lower than last year, the research group said.

An early surge at the beginning of September was followed by a late September slump as consumers' optimism was knocked by upheaval in the financial markets.

Rachael Joy in the consumer confidence team at GfK NOP, said: "Looking at the overall trend, I'd say we're seeing a tentative lift in UK consumer confidence, although we're still at the levels not seen since the 1990s recession.

"The indication is that people are coming to terms with the thought of living through a depression. While they are still nervous of their personal financial situation and the economy in general, we could be seeing the start of people acclimatising to the situation."

There were improvements on the major purchase index, which showed its first increase in 12 months, the group said.

Confidence in the general economic situation for the coming 12 months also improved in September – possibly due to the measures taken by the government to safeguard the banks.

The index for this measure increased by seven points to -40; still 21 points lower than this time last year, GfK NOP said.

However, consumers are feeling concerned about their own situation. The index measuring changes in personal finances during the last year has dropped by three points to a score of -19; this is twenty-three points lower than this time last year.