Consumer confidence continues gradual recovery amid household bill concerns

Consumer confidence has continued its gradual recovery amid concerns rising household bills could be behind signs of cooling.

GfK’s long-running Consumer Confidence Index rose one point in September, continuing the slow recovery seen since April, but remains firmly in negative territory at minus 13.

It marks the first time since summer 2024 that the index has recorded three consecutive overall monthly increases.

Source: GfK

The largest gains this month came from perceptions of the wider economy over the past year – up four points to minus 36 – and personal finances over the same period – up three points to minus three.

Expectations for the general economy over the coming 12 months have risen by one point to minus 22 – 10 points above September last year – while confidence in personal finances over the next year also rose, by one point to five.

The only measure to fall was the major purchase index – an indicator of confidence in buying big ticket items – down one point to minus 8 but still eight points higher than a year ago.

Source: GfK

Neil Bellamy, consumer insights director at GfK, said: “The savings index rose five points, which, although not used in our headline score, may indicate that those who can are thinking of building a financial buffer.

“However, the return of higher inflation removes one of the strongest positives seen in previous months.

“So, while the headline score continues to improve, confidence is still firmly in negative territory. With inflation, energy and fuel prices rising, could we soon see consumer sentiment falter?”