Consumer confidence index drops five points

The index, carried out by GfK on behalf of the European Commission, takes into account people’s personal financial situation (looking backwards and forwards), the general economic situation (also looking backwards and forwards), the major purchase index and the savings index. 

The index measuring changes in personal finances during the last 12 months decreased by two points to +1 (the same level as last year), while the forecast for personal finances over the next 12 months decreased by four points to +2 (four points lower than November 2015 ). 

The measure for the general economic situation of the country during the last 12 months fell by six points to -25 ( 19 points lower than the same time last year), and expectations for the general economic situation over the next 12 months have dropped by five points to -22. This is 16 points lower than November 2015. 

The major purchase index decreased by nine points to +5 (four points lower than November 2015 ) and the savings index fell by two points to -11. This is 12 points lower than last year. 

“The slump across the board this month points to continuing uncertainty about the state of the economy among consumers," said Joe Staton, head of market dynamics at GfK. "Although scores for our personal financial situation just about remain positive, the big theme is the reduced confidence in the UK economy looking back and ahead.

"We are viewing our economy over the past 12 months with increasing despondency."