Consumer confidence teeters on brink of record low during coronavirus lockdown
Consumer confidence plummeted at the beginning of April but held steady for the rest of the month as the UK adjusted to life under lockdown.
The latest research showed that consumer confidence stayed at minus 34 points throughout the month, just five points above the record low reported in July 2008.
The measure for the general economic situation of the country during the last 12 months dropped four points to minus 44 in April, a year on year fall of 14 points.
The Major Purchase Index was minus 52 in April, 51 points lower than it was in April last year, as retail sales plunged during the coronavirus lockdown, according to the latest survey by GfK.
The research did find that there was a three point increase in consumer’s expectations for their personal finances over the next 12 months. However the index remained low at minus 14, a 14 point drop compared to April last year.
Gfk client strategy director Joe Staton said: “Consumer Confidence has stayed at the minus -34 points recorded in our first Covid-19 flash of 6 April.
“It is impossible to say if this is at the bottom after weeks of adjustment to the reality of lockdown life, or if further falls are to come.”
He added: “It’s no surprise that the Major Purchase Index remains low. Despite households making online purchases of home cooking equipment, freezers, TVs, monitors and other goods, these surges in demand have not compensated for the loss of overall retail sales due to the closure of physical stores.
“There is no guarantee that the fall in consumer confidence has ended and we are only five points away from the record minus 39 low seen in July 2008.”