United Kingdom: Consumer sentiment worsens in November, as Brexit uncertainty intensifies
November 29, 2018
The GfK consumer confidence indicator fell from minus 10 points in October to minus 13 points in November. As a result, the index moved further into negative territory, where it has been since April 2016, highlighting that consumers are broadly pessimistic.
November’s decrease reflected consumers’ worsened views of their personal financial situation and the general economic situation over the next 12 months and for the year ahead, and a reduced willingness to make major purchases.
Going forward, recent signs of faster wage growth, if maintained, could support confidence. However, consumer sentiment is unlikely to see a significant improvement until the cloud of uncertainty currently surrounding the Brexit withdrawal process is lifted.
Author: Oliver Reynolds, Economist