UK Consumer Confidence Sliding

UK consumer confidence slipped further as concern over the general economic situation increased, a key survey reveals today.

However, pollster GFK highlights its view that the fall in its key consumer confidence index from -6 in March to -7 in April signalled a surprising degree of stability in this composite measure given “rampant inflation” and “stagnating wages”.

The survey shows the sub-index relating to confidence about the general economic situation over the next 12 months fell from -20 in March to -21 in April. This is seven points weaker than in April 2016, ahead of the Brexit vote. And the index measuring people’s confidence about their personal financial situation over the next 12 months slipped from +2 in March to +1 in April.

Rising inflation is taking its toll on British households, knocking consumer confidence to its lowest level since the aftermath of last summer’s Brexit vote. consumer Confidence measure is well below the levels seen before June’s vote to leave the EU. The poll also underscored the squeeze on living standards as inflation starts to rise faster than pay. It found Britons were at their gloomiest in more than three years about their own financial outlook.