Households growing more fearful about personal finances and wider economic system, survey finds, as odds on no-deal Brexit shorten
- Consumer confidence tumbled from -11 to -14 in August, GFK says
- The findings will come as one other blow to the ailing excessive road
- The shopper confidence index has been in unfavourable territory since March 2016
Households are feeling more and more gloomy about their personal finances and the well being of the wider economic system over the subsequent 12 months, a survey has discovered.
According to GfK’s long-running index, total shopper confidence slid three factors to minus 14 in August amid ‘pre-Brexit nerves’.
It marks the weakest studying since January this 12 months when sentiment tumbled to its lowest level since 2013, and comes as the nation edges ever nearer to a no-deal Brexit.
Overall shopper confidence slid three factors to minus 14 in August, in accordance with GfK’s long-running Consumer Confidence Index
In August shoppers grew to become notably involved about the common financial state of affairs in the 12 months forward. That measure tumbled by six factors to minus 38 – that is 12 factors decrease than this time final 12 months.
Households are additionally far much less assured about their personal finances now. This measure dropped by 5 factors following an encouraging leap only a month earlier.
Shoppers confirmed much less willingness to splash out ‘massive ticket’ gadgets too.
Joe Staton, consumer technique director at GfK, mentioned: ‘Until Brexit leaves the entrance pages – every time that can be – shoppers could be forgiven for feeling nervous not simply about the wider economic system but additionally about their monetary state of affairs.’
It is one other blow to the ailing retail business, as weak shopper sentiment typically interprets to a tightening of the purse strings and a drop in retail gross sales.
Firms together with Asda and McColl’s recently admitted that the political surroundings was making life more tough, whereas loos chain Bathstore buckled under the pressure and grew to become the newest agency to tip into administration final month.
GfK discovered that buyers confirmed much less willingness to splash out ‘massive ticket’ gadgets final month
Staton warned that if the downward development continues, the index might quickly be approaching ranges not seen since the credit score crunch.
‘If there’s a continuation of that dip in our emotions about our future wallets, we would shortly see a headline rating crash to a degree that approaches the worrying figures seen in the worst days of the 2008/2009 monetary disaster.
‘We will not be there but, and we could not essentially get there, however it’s a development we have to watch fastidiously,’ he mentioned.