NEWS31 March 2020

Consumer confidence takes a knock

Covid-19 Finance News Trends UK

UK – GfK’s Consumer Confidence Index has decreased by two points to –9 for March as the first signs of covid-19’s impact on confidence start to be seen.

Piggy bank personal finance_Crop

One measure – personal financial situation over the past 12 months – increased; general economic situation over the past 12 months remained the same; but three measures decreased – major purchase index, general economic situation over the next 12 months and personal financial situation over the next 12 months.

Joe Staton, client strategy director at GfK said: “Against the threat of a dramatic slowdown in the UK economy due to the spread of Covid-19, the Consumer Confidence Barometer has weakened by two points this month. Importantly, this research was carried out during the first two-weeks of March, when the coronavirus was headline news but not impacting day-to-day lives of people across all UK nations to the degree we see today.

"After a run of increasingly positive numbers since last December, we’re now seeing very clear disruption. There’s a six-point drop in perceptions of the economy in the coming year, although the view on the next 12 months for personal finances has recorded a softer decrease of three points. The steep eight-point fall in the Major Purchase Index is worrying news for retailers across the land. While we have a long way to drop before we match the devastating numbers seen in July 2008 when the Overall Index Score crashed to -39 points, lockdown Britain can only expect further deterioration.”