UK consumer confidence hit by European uncertainty

Consumer confidence in the UK has dropped three points in April due to the economic uncertainty and mixed measures about Europe, according to GfK’s Consumer Confidence Index.

The overall index fell three points to minus three in April, marking the first negative result in 15 months, and each measure used to calculate the Consumer Confidence Index also saw decreases.

GfK, head of market dynamics, Joe Staton, said: “Mixed messages about a post-Brexit world and the on-going Eurozone crisis are casting a cloud over our economy. After a continuous 15-month showing of positive numbers in the barometer, April 2016 sees the UK drop back into negative territory with a -3 score.”

The biggest dent to confidence comes from consumers’ depression about the general economic situation in the UK for the next year, which dropped 20 points in 12 months. In addition, the index for personal finances over the next 12 months fell by two points to 7 and the major purchase index also decreased by six points in April to five, one point lower than this time last year.

Staton added: “Against this backdrop, even faith in our personal economic fortunes has taken a battering contributing to the overall fall in the numbers. Trends in confidence show our degree of optimism about the state of the economy and this indicator will make for interesting reading between now and the EU referendum on June 23.”