2018 ends with consumer confidence at five-year low

Consumer confidence has dropped to a five-year low as uncertainty facing the UK economy in the coming months affects consumer spending.

The figures come from GfK’s long-running monthly Consumer Confidence Index which decreased by one point in December 2018 to -14. In November the index decreased three points.

The measure for the general economic situation of the country during the last 12 months also dropped by two points to -31 this month, the same level as December 2017, and expectations for the next 12 months have decreased six points to -38, 10 points lower than December 2017, according to Retail Sector.

Last week Mike Ashley, the founder of Sports Direct, echoed the sentiment, stating retailers had experienced their worst November on record

GFK said the steep drop for the outlook on the general economy in the coming year is the “most telling data point this month”, with consumers clearly “casting a vote of no-confidence in our immediate economic future”.

"Christmas cheer in short supply"

Joe Staton, client strategy director at GfK, said UK consumers are ending 2018 on a “pessimistic note” with “Christmas cheer in short supply. The uptick in the ‘major purchases’ measure also might be no more than a last festive hurrah for retailers, the only sliver of comfort and joy amidst the gloom."

Photo credit: Brexit, Wikimedia Commons; article source: Retail Sector