Consumer confidence took a hit in September following a dramatic decline in expectations for the broader economy, new data reveal. GfK's established Consumer Confidence Index tumbled two points to minus 19 this month, with every metric showing a downturn compared to the previous month.

Neil Bellamy, consumer insights director at GfK, commented: "The August 7th decrease in interest rates does not appear to have provided any obvious boost to the financial mood of consumers or drawn attention away from day-to-day cost issues." Expectations for the general economy plummeted two points to minus 32, representing a steep drop from the minus 11 recorded for the identical measure 15 months earlier.

The outlook for personal finances over the coming year has declined one point to four, though this remains seven points above the same period last year. The Major Purchase Index, which gauges confidence in acquiring expensive items, has fallen three points to minus 16, whilst sitting seven points above last September's figure.

Mr Bellamy continued: "Both personal finance measures - past and future - are lower, while our major purchases measure has dropped three points to minus 16.

"Even more striking is an eight-point fall in saving intentions."

Looking at the economy, Mr Bellamy said: "Sentiment is sliding sharply.

"In June 2024, our forward-looking measure stood at minus 11, but just 15 months later, it has slumped to minus 32.

"Perceptions of the past year remain weak too, down three from last month to minus 45.

"With tax rises expected in the November budget, the risk is that confidence inevitably falls, just like the autumn leaves."