Economic uncertainty clouds consumer confidence
UK consumer confidence has slipped in April as mixed messages about a post-Brexit world and the on-going Eurozone crisis cast a cloud over the economy.
GfK’s long-running Consumer Confidence Index shows that the main headline index fell by three points to -3 this month. This means it has dropped back into negative territory after a continuous 15 month showing of positive numbers.
While the index relating to the forecast for personal finances over the next 12 months decreased by two points to 7, the index measuring expectations for the general economic situation over the next 12 months fell by two points to -14.
Meanwhile, the climate for major purchase index declined by six points to 5.
Joe Staton, head of market dynamics at GfK, said: “The biggest dent to confidence comes from consumers’ depression about the general economic situation in the UK for the next year, dropping 20 points in 12 months.
“Against this backdrop, even faith in our personal economic fortunes has taken a battering contributing to the overall fall in the numbers. Trends in confidence show our degree of optimism about the state of the economy and this indicator will make for interesting reading between now and the EU referendum on June 23rd.”
