The latest survey conducted by GfK in the UK has revealed a concerning trend of declining consumer confidence, with Brexit uncertainties playing a major role in shaping people’s perceptions. The October figures show a further drop in consumer confidence compared to previous months and years, painting a rather grim outlook for the upcoming Christmas shopping season.
Described as a “black cloud” hanging over the UK economy, Brexit continues to cast a shadow, influencing consumers’ sentiments and spending behaviors. The overall consumer confidence index has fallen by two points from September and four points from the previous year, now standing at a worrying -14. All components contributing to the final figure have shown decreases, reflecting a general sense of pessimism among consumers.
Despite the gloomy outlook regarding the wider economy, consumers still hold a slightly more positive view of their personal situations. However, concerns about personal finances for the coming year could potentially impact the overall economic outlook. The major purchase index, which measures consumers’ willingness to make significant expenditures, is also showing signs of weakness, indicating hesitancy in spending due to ongoing Brexit uncertainties.
Joe Staton, Client Strategy Director at GfK, pinpoints the ongoing Brexit uncertainty as a key factor behind the decline in consumer confidence. The lack of clarity and stability in the political and economic landscape, coupled with the possibility of a general election, are leading consumers to feel less secure about their financial futures.
In essence, consumers in the UK are currently grappling with feelings of apprehension and unease, largely influenced by the uncertainties surrounding Brexit. Without a sense of stability and clarity in the external environment, consumer confidence is likely to remain subdued, presenting challenges for the economy in the future.
For further information on consumer confidence trends and Brexit’s impact on the UK economy, you can refer to the following links:
1. BBC – UK consumer confidence hits all-time low
2. Financial Times – Brexit uncertainty weighs on UK consumer confidence
