Consumer Confidence Grows Ever So Slightly According to GfK NOP Consumer Index
A new consumer confidence index revealed that consumers are showing more confidence in the future. It may not be so much from a major change or turn around in the economy so much as they are becoming more comfortable in their situation. No one is expecting a quick fix anymore. Acceptance and adjustment to less spending power has settled in and has become the norm.
The GfK NOP consumer index report just released shows that their index rose to -30 in September from a -31 in August, which turned out to be a 4 month low. Expectations for the index were to see a further decline in confidence to -33, but instead there was a 1 point change month to month. The fact that there was a decline expected and instead there was an increase in the index was surprising. Despite the increase the level for September is still 10 points below the -20 seen in September 2010. The GfK survey polled a sample of around 2,000 people in the month of September and was conducted on behalf of the European Commission.
GfK Managing Director Nick Moon, remarked concerning the index saying, "The index's one-point rise this month is not statistically significant, but it is psychologically important as it halts the decline of recent months.
"With economic growth effectively stalled at the moment, retailers would welcome more high street activity, although if consumers are buying German fridges and Japanese cars, this would create quite different problems for the UK economy.”