UK consumer confidence dips as household financial outlook deteriorates.


UK consumer confidence edged lower in September as households reported a sharp deterioration in their financial outlook amid persistent inflationary pressures, according to the latest figures from YouGov and the Centre for Economics and Business Research (Cebr).

Source: Sharecast

The YouGov/Cebr consumer confidence index fell by 0.2 points to 106.2, from 106.4 in August, though still firmly above the 100 threshold that separates positive from negative sentiment.

The monthly decline was driven by worsening perceptions of household finances, with both retrospective and forward-looking measures recording their first falls since April.

The measure of households' financial situation over the past 30 days dropped by 2.2 points to 85.5, while expectations for the next 12 months fell more sharply, declining by 5.7 points to 83.9.

However, perceptions of business activity improved, with the measure covering the past 30 days rising by 1.5 points to 109.3, while expectations for the coming year increased by 2.7 points to 120.4.

Job security sentiment also strengthened, with the retrospective measure rising by 1.1 points to 92.6, although expectations for the next 12 months were broadly unchanged at 117.4.

Meanwhile, perceptions of house prices improved slightly, with the retrospective measure increasing by 0.3 points to 111.9 and the forward-looking reading rising by 0.4 points to 128.5.

Sam Miley, head of forecasting and thought leadership at Cebr, said: "Inflation was already above 3% heading into September and is likely to accelerate further, being driven by motor fuels, where prices have recently hit record highs.

"With earnings growth also slowing, households are being further squeezed, meaning pessimism over finances will likely linger."

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