Surge in consumer confidence is slowed by poor wage growth
THE RECOVERY in British consumer confidence has slowed down, GfK’s monthly survey showed yesterday, despite strong economic growth.
Analysts believe poor wage growth and sustained inflation are to blame.
GfK’s index surged up from sustained lows of minus 13 at the end of last year to plus one last month – well above the study’s long-run average of minus nine, and indicating healthy growth.
However, September’s score is down two points to minus one, the fifth month in which the measure has bounced around the zero-mark – despite sustained economic growth and falling unemployment.
“One possible explanation for this positivity no longer being mirrored in the index is that many people are not themselves feeling any better off despite the growth in GDP, and this may be tempering the impact of positive media coverage of the economy,” said GfK’s Nick Moon.