Recent survey findings from YouGov and the Centre for Economics and Business Research have revealed that consumer confidence in the UK has reached a distressing low, not witnessed since the onset of the pandemic. The survey utilized the Consumer Confidence Index (CCI) as a measure of consumer sentiment, whereby a score of 100 indicates general confidence and anything below reflects heightened pessimism.

Alarming results from the latest survey showed that the CCI dropped by 4.2 points, sliding from 103 to 98.8. This substantial decline underscores a significant decrease in consumer confidence. One of the primary causal factors behind this decline is the surging inflation triggered by soaring energy prices and other cost hikes. With temperatures cooling down, the looming prospect of mounting expenses and financial instability has left individuals deeply concerned about their economic outlook.

It is important to note, however, that despite the overall negative sentiment, consumers are still displaying a relative positivity towards elements such as house prices and job security, albeit with a downward trajectory. The figures for house prices witnessed a 7.2-point decrease, landing at 124.9, while the reading for job security experienced a decline of 2.4 points, now standing at 118.5. These statistics hold significant weight as they impact individuals’ willingness to spend on non-essential items, which includes fashion and beauty products and services.

Crucially, this survey was conducted prior to the announcement of the new prime minister, Liz Truss, and the launch of the energy prices support plan. These recent developments may very well influence consumer sentiment in September, and it remains intriguing to observe how these figures unfold in the ensuing months.

On the whole, the negative shift in consumer confidence in the UK mirrors the concerns and uncertainties that individuals are grappling with amidst mounting inflation and economic hurdles. As the country grapples with these challenges, businesses across diverse sectors, including fashion and beauty, must adapt their strategies to meet the dynamic changes witnessed within the consumer landscape.

Useful Links:
1. BBC – Market Data
2. Financial Times