Published on October 31st, 2018 | by The GC Team0
Brexit fears sap UK consumer confidence
Consumer confidence slipped again in October as concern about the future of the general economy under stalling Brexit talks deepened and consumer spending on big-ticket items such as electrical goods and furniture fell.
GfK’s Consumer Confidence Index dropped one point to -10 amidst expectations for the general economic situation over the next 12 months sinking to the low level of -28.
“The prospect of a no-deal/hard-deal Brexit must surely be weighing heavily on people’s minds, injecting a mood of despondency as to how people view their future personal finances and the longer-term economic outlook for the UK,” said Joe Staton, Client Strategy Director at GfK.
“We also appear to be losing confidence that now is ‘the right time’ to make major purchases. This will concern retailers in the run-up to Black Friday, Cyber Monday and the key Christmas trading period.”
Staton commented on “imminent end of austerity” claims, lower retail price inflation and accelerating wages growth, stating that these would normally be sufficient to boost consumer sentiment. “It looks like the UK Government will need to administer an exceptionally strong tonic to the nation to settle the obvious Brexit anxieties,” he added.