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UK consumer confidence at six-year low ahead of election

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UK consumer confidence at six-year low ahead of election
BRISTOL, ENGLAND - DECEMBER 20: Christmas shoppers pass signs offering stock discounts in the window of retailers on the main shopping street December 20, 2017 in Bristol, England. According to the Confederation of British Industry retail sales in the UK enjoyed solid growth in the run-up to Christmas so far, though trading conditions remained tough, as retailers compete with online sales and the reduction in consumer spending and confidence caused in part by the vote to leave the European Union. (Photo by Matt Cardy/Getty Images)

Brits’ confidence in the economy fell back to its joint-lowest in six years this month, a survey showed today, as yet more Brexit uncertainty increased consumers’ gloom.

Read more: Fourth time lucky as MPs back Boris Johnson for December election

The consumer confidence index from market research institute GfK fell to minus 14 in October. This was down from minus 12 in September and was the joint-lowest reading since July 2013.

The survey was carried out between 1 and 14 October, however, meaning those asked did not yet know about Prime Minister Boris Johnson’s new Brexit deal, which was struck on 17 October.

Yet uncertainty has since returned, with Johnson’s deal shelved ahead of a General Election on 12 December.

The GfK survey shows that in October, Brits grew more pessimistic about their recent financial situation as well as their situation over the next 12 months.

Pessimism grew about the country’s general economic situation over the next 12 months, and respondents became less keen on making big purchases.

Joe Staton, client strategy director at GfK, said the survey be an “early sign of long-running weak economic confidence spreading to the way we view money matters”.

Consumer spending has been relatively strong in 2019, but was still not enough to keep the UK economy from contracting in the second quarter.

There are signs that spending could be about to slow down, driven by a rise in unemployment from its current record-low levels.

Read more: Spending watchdog to publish forecasts despite scrapping of Brexit

“Nobody wants to see consumer spending reduce and let’s hope it doesn’t happen. But Brexit’s continuing uncertainty and the spectre of a general election is not helpful,” Staton said.

(Image credit: Getty)