Consumer confidence drops ahead of December election

UK consumer confidence in October fell to its joint-lowest point in six years amid continued Brexit uncertainty and ahead of the 12 December general election.

GfK’s Consumer Confidence Index decreased two points to -14 in October compared to -12 in September.

Joe Staton, client strategy director at GfK, said in a statement: “In the face of continued Brexit uncertainty, the overall Index score fell to -14 this month. Importantly, the ongoing machinations in Westminster appear to be impacting how we view our personal financial situation for the coming year, with a fall of -3 in this measure in October. Is this an early sign of long-running weak economic confidence spreading to the way we view money matters?”

Staton said that consumers’ deteriorating sentiment regarding personal finance affairs was worrying as strong consumer spending was a main driver of economic growth since the referendum took place back in 2016.

He added: "Does reduced confidence in personal finances for the year ahead pose a risk to the wider economy? Nobody wants to see consumer spending reduce and let’s hope it doesn’t happen. But Brexit’s continuing uncertainty and the spectre of a general election is not helpful. People can only feel confident if they believe the external environment is stable, yet consumers are witnessing too many Brexit shifts and surprises, too many Brexit timelines and counter proposals to justify any longer-term confidence. The big black Brexit cloud is refusing to shift.”

Photo credit: Photo credit: FashionUnited / GfK