UK consumer confidence at seven-year low - GfK

UK consumers remained in wait-and-see mode in January amid continued uncertainty over Brexit, with consumer confidence at a seven-year low, according to the latest survey from GfK.

GfK's consumer confidence index was unchanged from December at -14, remaining at the lowest point in five years.

Meanwhile, consumers were the least optimistic they have been about the outlook in seven years, with the index for the general economic situation over the next 12 months at -39, getting close to the levels seen at the end of 2008 and early 2009.

Joe Staton, client strategy director at GfK, said: "This is unsurprising given that consumers, companies and corporations thrive on certainty, which is in short supply just two months before the planned date for the UK’s EU-exit. The next few months promise to be turbulent for the consumer so will this measure for the economic outlook in the coming year drop even further?"

The measure for the personal financial situation over the last 12 months improved a touch to zero from -1 in December, while the gauge for people's financial situation over the next 12 months rose to 1 this month from -1 in December. Staton attributed the slight improvements to strong employment, low interest and inflation rates and rising household incomes.

Analysts at Shore Capital said: "We have been highlighting for some time that despite full employment and rising UK living standards this is not being reflected in consumer confidence, so it is perhaps not surprising to see rises in personal finance situation index, but falls in overall economic conditions, given the Brexit fog emanating from Westminster.

"We hope, like the rest of the UK, for greater clarity in the coming weeks but the GfK index highlights the confused UK consumer and low levels of confidence."