NEWS23 December 2016

The roller-coaster year for UK consumer confidence

Brexit News Retail Trends UK

UK – It’s been a tumultuous year politically and this backdrop has taken its toll on consumer confidence according to GfK’s Consumer Confidence Index.

Oxford Street, London

The index increased one point in December, taking it to -7 – this time last year it was 2. Throughout 2016, the confidence index has risen and fallen: in January it was 4; post-Brexit it plunged to -12 in July; it increased in September but fell again by the end of the year.

Joe Staton, head of market dynamics, GfK said: "The past 12 months were a really turbulent year for confidence in the UK as consumers reacted to the dramatic economic and political turmoil.

"While consumers remain relatively confident about their person financial situation, confidence in the general economic situation for the UK has collapsed in the face of uncertainty about the future both at home and abroad."

However its major purchase index has increased seven points in December to 12 – five points higher than this time last year.

"Despite everything, consumer resilience is shown by strength in the major purchase index, the ‘now is a good time to buy’ mantra being reflected in strong retail sales growth," added Staton.