Consumer confidence flat but appetite for major purchases rises

Wednesday, 30 November 2011 09:34

Consumer confidence has increased by the slimmest of margins, according to the latest survey by GfK NOP social research.

The index rose from -32 in October to -31 in November which is ten points lower than November 2010. The level still represents one of the lowest levels of consumer confidence ever recorded with a period at the height of the financial crisis in 2008 and one month in the early 1990’s the only time that the index has been as low before last month.

Nick Moon, Managing Director of GfK NOP Social Research, comments: "The one point increase in the index this month is a minor variation and doesn’t indicate a significant change. While it does reverse the decline of last month, what matters is the long term trend, and at the moment that still looks very gloomy.”

Gfk/NOP measures four other indicators, two of which saw increases, one of which stayed the same and one fell. The index for individuals personal finance situation also increased by one point to -23, again ten points below the level recorded 12 months ago.

The measure for the general economic situation also rose by one point to -61, 15 points lower than this time last year. Expectation levels for the general economic situation over the next 12 months have fallen by two points to -33, 11 points lower than in November 2010.

However, the major purchases measure did provide some good news as the index rose by five points to -27, still ten points down from last year but an indication that consumers could be ready to spend if they find the right deal.

Nick Moon said: "The one bright sign, which will certainly be welcomed on the high street, is the increase in the proportion of British consumers that think now is a good time for a major purchase.“

The ‘now is a good time to save’ Index, has decreased three points to -13, which is eight points lower than in November 2010.

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