‘Brexit anxieties’ lead to decrease in consumer confidence in October

Growth from Knowledge’s (GfK) long-running consumer confidence index decreased by one point to -10  in October 2018, amid consumer anxieties over Brexit.

The market research institute said the lack of confidence from shoppers will “concern retailers” in the run-up to Black Friday, Cyber Monday and the key Christmas trading period, and added: “Consumers behave like financial markets – when confidence is lacking, markets stutter and tumble”.

The measure for the ‘General Economic Situation’ of the country during the last 12 months has stayed the same at -28 this month, and expectations for the next 12 months have decreased one point to -28. The Major Purchase Index decreased two points in October to +4, but is one point higher when compared with the previous October.

Joe Staton, client strategy director at GfK, said: “The recent claims about the imminent end of austerity, and the good news of lower retail price inflation and accelerating wages growth would normally be sufficient to boost consumer sentiment.

“But the core Index slipped again this month. The prospect of a no-deal/hard-deal Brexit must surely be weighing heavily on people’s minds, injecting a mood of despondency as to how people view their future personal finances and the longer-term economic outlook for the UK. We also appear to be losing confidence that now is ‘the right time’ to make major purchases.”