UK consumer sentiment at its weakest level since December 2017 - survey
The UK’s under-pressure high street was dealt a fresh blow on Thursday, after research showed consumer confidence had fallen to its lowest level for nearly a year.
The respected GfK Consumer Confidence Index slipped to -13 in November, from -10 in October, the lowest reading since last December – when it was also -13 – and below analyst forecasts.
Joe Staton, client strategy director at GfK, said there had been an “across-the-board fall for all measures, with concerns over household finances, the general economy and purchase intentions.
“The measure that fell most is our Major Purchase Index, with a seven-point plunge that is unhappy news for retailers. The view on the general economy in the coming 12 months fell four points, as did the perception of the past year’s personal finances.”
The Major Purchase Index came in at -3, while expectations for the general economic situation was -32.
The retail sector enjoyed a strong summer, as the heatwave and World Cup inspired shoppers to splash out. But sales have fallen away since then, as consumers worry about the strength of the economy and the impact of Brexit.
The Chancellor of the Exchequer Phillip Hammond warned on Wednesday that the UK would be worse off, whatever way it left the European Union, while the Bank of England said in the best-case scenario, the economy would be 3.9% smaller 15 years after Brexit.
Earlier this week, data from the CBI found that retail sales had picked up slightly in November. But they remain below average for the time of the year, with a number of retailers predicting overall business conditions to worsen in the next three months.
December is one of the most important months for the high street. But Staton warned: “The next few weeks are highly unlikely to inject any festive cheer, especially if Theresa May’s Brexit deal doesn’t win backing from MPs.”