United Kingdom: Consumer sentiment darkens in October
The GfK consumer confidence indicator registered minus 14 in October, down from minus 12 in September. As a result, the index remained in negative territory, where it has been since April 2016, highlighting that consumers are broadly pessimistic.
All five measures that constitute the index decreased in October, with consumers growing more pessimistic regarding personal finances and the general economic situation. Consumers were also less willing to make major purchases.
According to Joe Staton, Client Strategy Director at GfK: “This deterioration in sentiment regarding our personal financial affairs is worrying as strong consumer spending has been the main driver of economic growth since the Referendum in 2016, against a backdrop of low inflation, low interest rates, low wage growth and high employment.”