Published on November 30th, 2017 | by The GC Team0
Consumer confidence loses its sparkle
UK consumer confidence recorded its twentieth consecutive month in negative territory in November, matching the score of -12 seen in July 2016 after the Brexit vote.
GfK’s Consumer Confidence Index decreased by two points to -12 during the month, with all with all five measures used to calculate the score declining.
“Sadly, there’s no festive cheer in this month’s Consumer Confidence Index,” said Joe Staton, Head of Market Dynamics at GfK.
“Household jitters following the recent interest rate hike, squeezed incomes, higher inflation, and economic uncertainty have dampened the consumer mood across the UK.”
Staton suggested that a “plunge” in the Major Purchase Index, which dropped by 6 points, would be of most concern during the key Christmas trading period.
“Many retailers have been hit by the slowdown in consumer spending as households begin to feel the pinch and cut back on their budgets. The confidence trajectory is unquestionably negative and sadly no amount of tinsel or baubles will change it.”
He added that consumers need “some big, positive economic good tidings to reverse this downwards trend.”