Published on October 2nd, 2018 | by The GC Team0
Consumer confidence: Tick tock goes the Brexit clock
Consumer confidence fell by two points in September as fears for the general economy continued to drag the overall figure deeper into negative territory.
GfK’s Consumer Confidence Index decreased to -9, with expectations for the general economic situation over the next 12 months falling to -27.
Joe Staton, Client Strategy Director at GfK, attributed the negativity to Britain’s forthcoming withdrawal from the EU, stating that the clock ticking down caused the consumer mood to drop.
“There are fewer than 200 days until Brexit arrangements in some shape or fashion take effect,” he said.
“When respondents talk about their personal finances, the scores are still positive. But for the general economy, they can only reflect on the obvious uncertainty surrounding Brexit. That poor view of the wider economy is keeping the headline score negative – the last positive headline was the +4 in January 2016.”
Staton added that the danger is consumers might capitulate on how they feel about their personal finances.
“If that happens, we’ll see very sharp drops indeed in the Overall Index Score in the months up to March 2019.”