United Kingdom: Consumers grow even more gloomy in December
December 21, 2017
The GfK NOP consumer confidence indicator edged down from minus 12 points in November to minus 13 points in December. As a result, the index remains firmly entrenched in negative territory, where it has been since April last year, highlighting that consumers are broadly pessimistic.
December’s figure reflects consumers’ more pessimistic view of their financial situation over the last 12 months. Consumers also grew less willing to make major household purchases. On the other hand, consumers’ perception of their financial situation and the general economic situation over the next 12 months was unchanged, while they grew slightly less pessimistic about the general economic situation over the last year. The lack of Christmas cheer among consumers should come as little surprise, given the ongoing fall in real wages and elevated political uncertainty.
Author: Oliver Reynolds, Economist