Consumer Confidence September

After months of positive movements the consumer confidence has recorded a significant fall to -20, taking us to a similar level at the beginning of 2024.

All five measures are down but there are major corrections in the outlook for our personal financial situation for the next 12 months (down nine points), our views on the general economy for the coming year (down 12 points), and the major purchase index (down ten points). These three measures are key forward-looking indicators.

Considerations

Following the withdrawal of the winter fuel payments, and clear warnings of further difficult decisions to come on tax, spending and welfare, consumers are nervously awaiting the Budget decisions on 30th October The Guardian discuss the link to the fall with the upcoming budget news, impacting household morale.

(https://www.theguardian.com/business/2024/sep/20/uk-consumer-confidence-falls-sharply-amid-fears-of-painful-budget)

Kantar also did some work (this piece is US focused but there is alignment to findings across markets), where consumer confidence is heavily impacted by the news/media coverage. With a key outtake that brands should focus on the counter-narrative.

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What does this mean?

• Continue to consider price as a key part of comms, in the form of value. While maintaining your brand positioning.
• Be the lighter tone vs the negative backdrop in your consumers world – how can you brand/creative work in this space.
• Kantar highlights the lack of humour used in creative, which when used correctly can create an opportunity to inspire consumers.

For guidance on how to navigate your marketing in challenging times, reach out to our team of experts today [email protected]