Big ticket purchases help shore up consumer confidence
Consumer confidence is still holding steady following the EU referendum, defying expectations of a freeze in spending.
The GfK consumer confidence index, out today, came in at minus three in October, down slightly from minus one last month, but holding well above the minus nine recorded in the weeks immediately after the vote.
GfK also found plans to purchase big ticket items – an area economists through would show the first signs of a slowdown – were not yet being delayed, although rising inflation over the next 12 months as a result of the fall in sterling could yet prove a hiccup.
Joe Staton, head of market dynamics at GfK said: “Despite the continuing feel-good factor arising from persistent low interest and inflation rates, sterling’s sharp decline is arguably stoking fears that price rises will hit UK living standards hard next year.
“However, views on the state of our personal financial situation for the past year and next continue to remain positive, underlining that we feel more optimistic about situations we can control.”
The index’s “major purchase index” which looks at intentions to splash the cash on pricey items like TVs and cars jumped from nine to 14 – a possible symptom of people gearing up to splash the cash ahead of Christmas.