GfK Consumer Confidence Index October 2020

GfK’s Consumer Confidence dipped by six points to -31 in October - 17 points lower than in the same month a year ago and the lowest reading since May. All measures within the index decreased compared to the previous month.
Consumer confidence remains fragile, despite all-time low interest rates, continuous government financial stimulus and a strong recovery in the housing market as the threat of increasing unemployment and rising cases of the coronavirus weighs on sentiment.
Entering the Christmas season, new covid-19 restrictions and the end of the furlough scheme will likely have an adverse effect on consumer confidence for the remainder of the year.

Source: GfK

General economic situation

Consumers’ perceptions of the general economic situation over the last 12-months fell by six points to -67, some 34 points lower than in October 2019.

Similarly, expectations for the general economic situation over the next 12 months plunged by 12 points to -50, this is thirteen points lower than October 2019.

Personal finances

The backwards-looking personal finances component fell two points to -9 while the forward-looking measure fell by one point to 0.

Major purchases

Worryingly for retailers, the major purchases index declined by six points to -27 in October, this represents 26 points down from October 2019.

Savings Index (not included in the overall measure)

The savings index fell six points to 14 in October. This is seven points lower than the same month a year ago.

Source: GfK