UK consumer confidence slips amid economy fear

UK consumer confidence slipped further as concern over the general economic situation increased, a key survey reveals today.

However, pollster GfK highlights its view the fall in its key consumer confidence index from -6 in March to -7 in April signalled a surprising degree of stability in this composite measure given “rampant inflation” and “stagnating wages”.

The survey shows the sub-index relating to confidence about the general economic situation over the next 12 months fell from -20 in March to -21 in April.

This is seven points weaker than in April 2016, ahead of the Brexit vote. And the index measuring people’s confidence about their personal financial situation over the next 12 months slipped from +3 in March to +2 in April.

However, the index measuring consumers’ views of the climate for major purchases increased from +6 in March to +7 in April.

Joe Staton, head of market dynamics at GfK, said: “In the face of widespread reports of rampant inflation, stagnating wages and anxiety over our borrowing binge, UK consumer confidence is surprisingly stable.”

Referring to Prime Minister Theresa May’s triggering last month of Article 50 of the Lisbon Treaty, to start the formal two-year EU exit negotiation process, Mr Staton said: “Although the overall index score remains in negative territory, and has dipped this month, we have not seen any evidence of the predicted post-trigger downturn, despite high levels of concern about the general economic situation of the country. Is this simply the calm before the storm?

“That threat cannot be ruled out.” Friday, 28th April, 2017 by Locum