MNI: UK Consumer Confidence Up, But Savings Rise

UK consumer confidence edged higher in October, helped in part by an early round of autumn sales, a leading survey showed.

The GFK Consumer Confidence Index rose two points to -17 in October, helped by the Major Purchase Index rising four points at -12, a nine-point improvement over this time last year. However, the forecast for personal finances over the next 12 months -- closely watched as an internal indicator by GFK staff – fell one point to +3.

The Savings Index jumped seven points to +29 in October; continuing a trend of increased consumer saving in recent quarters. (see MNI INTERVIEW: UK Consumer Savings Still Drag on Economy- ONS )

“After several years of high inflation, savvy consumers have adapted their purchasing strategies to make the most of their money when discounts are most attractive. Where possible, many now delay major purchases until one of these sales events -- and the biggest of all is Black Friday, on November 28," Neil Bellamy, Consumer Insights Director at GfK, told MNI.

"Both consumers and UK retailers will be watching closely to see whether the Chancellor’s Budget, to be announced just two days before Black Friday, boosts or dampens spending during that crucial weekend,” he added.