UK consumer confidence slipped back this month, as mounting Brexit uncertainty led to consumers feeling increasingly nervous.
The latest GfK Consumer Confidence Index decreased to minus 14 in August, with declines registered across all measures.
In July, confidence had improved slightly to minus 11, buoyed by low interest rates and growth in real wages.
August however, brought back negative sentiments among consumers both in relation to personal finances and the wider economy.
The index measuring people’s views on the UK’s general economic situation of the country during the past 12 months decreased to -34, eight points lower than August 2018.
Expectations for the general economic situation over the next 12 months have decreased six points to -38 –12 points lower than August 2018.
Meanwhile, the index measuring changes in personal finances during the last 12 months fell two points to -1, which is five points lower than in 2018.
The forecast for personal finances over the next 12 months came in at plus 2 – a fall of six points from the measure in August 2018.
“Until Brexit leaves the front pages – whenever that will be – consumers can be forgiven for feeling nervous not just about the wider economy but also about their financial situation,” client strategy director at GfK Joe Staton said.
“Reduced confidence is now affecting how we see our personal finances. If there is a continuation of that dip in our feeling about our ‘future wallets’, we’d quickly see a headline score crash to a level that approaches the worrying figures seen in the worst days of the 2008/2009 financial crisis.
“We are not there yet, and we may not necessarily get there, but it’s a trend we need to watch carefully.”
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