December drop in UK consumer confidence marks two years of decline

The UK Consumer Confidence Barometer, which is conducted by GfK on behalf of the European Commission, found that the overall index score has decreased from -7 in January 2017 to -13 in December, with the UK experiencing almost two years of declining consumer confidence.

Two of the five measures used to calculate the score fell this month (personal financial situation over the last 12 months and the major purchase index), two measures stayed at the same level (general economic situation and personal financial situation over the next 12 months) and one saw a one-point increase (general economic situation over the last 12 months). 

The major purchase index started the year at +10, decreasing to -4 in December.

Joe Staton, head of market dynamics at GfK, said: “It has been a slipping and sliding year. The overall index score has slipped from – 7 in January to -13 in December – and not a single positive score in between. In fact, we have not been in positive territory for nearly two years.

“We need to see several issues move on before the downward trend of the consumer mood changes. We need to have a better sense of how Brexit will pan out, and also of how quickly and how far interest rates will rise. But none of this will be resolved quickly so there’s every likelihood that 2018 will take us lower.”