The index found that the index measuring personal finances during the last year was down one point at -10, albeit at nine points better off than in October 2023.

The forecast for personal finances over the next 12 months was up one point at -2, which was six points higher than this time last year.

The measure for the general economic situation of the country during the last 12 months was down five points at -42, which was 12 points higher than in October 2023.  

Expectations for the general economic situation over the next year fell one point to -28, but was still four points better than in October 2023.

The results come ahead of the new Labour government’s first Budget, which is due to take place on 30^th October.

The Major Purchase Index, which examines whether now is a good time to make a major purchase, was up two points to -21 and was 13 points higher than the same time last year.

The Savings Index, which measures whether the time is right to save money, rose four points to a positive score of 27, and was also two points higher than in October 2023.

The findings are based on a nationally representative sample of 2,001 UK adults in the UK with the research carried out between 1st and 15th October.

Neil Bellamy, consumer insights director at GfK, said: “As the Budget statement looms, consumers are in a despondent mood despite a fall in the headline rate of inflation.

“This month’s Consumer Confidence Barometer paints a picture of people holding their breath to see what’s in store for them on 30^th October.”