Consumer confidence falls in November
New figures have shown that consumer confidence declined in November to hit the lowest level since just after the Brexit vote.
GfK’s long-running Consumer Confidence Index decreased by two points to -12 in the month with all measures used to calculate the score seeing a fall.
The biggest drop occurred in the major purchase index which was down six points to -3.
GfK attributed the fall to household jitters following the recent interest rate increase, squeezed incomes, higher inflation, and economic uncertainty affecting the consumer mood across the UK.
Joe Staton, head of market dynamics at GfK, said: “Sadly, there’s no festive cheer in this month’s Consumer Confidence Index. This is the second time this year that consumer confidence has matched the worrying -12 score seen in July 2016 after the Brexit vote. This is also the 20th consecutive month where the overall index score has come in at a negative value – that’s not good festive news.”
He added: “Perhaps of most concern during this key Christmas trading period is the plunge in the major purchase index (a sharp six -point drop). 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.”
The measure for the forecast for personal finances over the next 12 months declined by two points to 2 this month – the same level as November 2016.
Meanwhile, the measure for expectations for the general economic situation over the next 12 months decreased by two points to -28 which is six points lower than this time last year.
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