January sees sharp drop in consumer confidence
There has been a sharp drop in consumer confidence this month as people feel less optimistic for the outlook for the economy.
GfK’s long-running Consumer Confidence Index has decreased by five points to -22 in January, with all measures down compared to last month’s announcement.
Neil Bellamy, consumer insights director, NIQ GfK, said: “New Year is traditionally a time for change, but looking at these figures, consumers don’t think things are changing for the better. ”
While the measure for expectations for the general economic situation over the next 12 months has declined by eight points to -34, the index for the forecast for personal finances over the same period has fallen by three points at -2.
Never Miss a Retail Update!Meanwhile, GfK’s major purchase index is down four points to -20, the same as this month last year.
Bellamy said: “There are particularly steep falls in consumer views on the wider UK economy, both looking back a year (down seven points) and at what’s in store for the next 12 months (eight points lower).
“These figures underline that consumers are losing confidence in the UK’s economic prospects.”
He added: “While the savings index on motivation to save money is not included in the calculation of the overall index score, it’s notable that it has leapt nine points in January to +30.
“This sharp increase is unwelcome because it’s another sign that people see dark days ahead and are therefore thinking of putting money aside for safety.”
