Consumer confidence dips as fear of increasing prices grows

UK consumer confidence in the economy, personal finances and future spend has seen a sharp decline this month according to Verdict Retail’s Consumer Confidence tracker, dropping 6.2 points to minus 26.3 points from August to September.

As consumers worries over the fall out of the Brexit continue to surge amid a falling pound, more and more consumers expect the economy to worsen over the next six months rather than improve. Following the recent Tesco and Unilever row, consumers are more concerned than ever to the rise of shop price increases.

In September, more consumers said they felt that they were less able to afford essentials in comparison to August, with price increases in clothing and fuel leaving consumers feeling as if they were unable to afford other everyday goods and services.

Although Verdict Retail latest poll of 2,000 UK consumers took place before the pound hit a historic low and the Tesco and Unilever row, consumers still held negative views on the economic outlook. It is also likely that the index recording consumer sentiments towards the economy, personal finances, and future retail spending will fall even more next month.

“Future consumer sentiment has taken a hit this month, as market volatility has seen the future of the UK’s economy brought to the front of people’s minds,” commented Zoe Mills, analyst at Verdict Retail.

“Retailers have also voiced their concerns regarding price rises, meaning that consumers have better insight into how the vote to leave the EU will personally impact them. The future sentiment index is likely to deteriorate further over the coming months, as further action to leave the EU is taken.”