Consumer confidence drops in November
New data from GfK has shown that consumer confidence has dropped this month due to continuing uncertainty about the state of the economy.
The company said its long-running Consumer Confidence Index has decreased by five points in November to -8.
The measure for the general economic situation of the country during the last 12 months fell by six points to -25. Meanwhile, the index measuring expectations for the general economic situation over the next 12 months decreased by five points to -22 which is 16 points lower than November 2015.
Joe Staton, head of market dynamics at GfK, said: “The big theme is the reduced confidence in the UK economy looking back and ahead.
“We are viewing our economy over the past 12 months with increasing despondency. The decreasing score on the economy for the next 12 months also shows we are resolutely gloomy about the outlook despite strong GDP numbers.”
The index relating to the forecast for personal finances over the next 12 months decreased by four points to +2.
In addition, the climate for major purchase index fell by nine points to +5; this is four points lower than this time last year.
Staton added: “The ‘next 12 months’ figure has been low since the June vote to leave the EU as ongoing economic turmoil, inflationary pressures and global anxiety impact our levels of confidence.
“Despite recent strong retail sales, we are reporting a sharp -9 point drop in the major purchase index this month and this will be an acute concern for retailers as they gear-up for the key Christmas selling period.
“Many are saying that fears about the British economy have been overstated, but time will tell if the pessimism shown in the Index is misplaced or not.”
