Consumer confidence has fallen this month to its lowest level since last February when the country was under lockdown. The four points decline in the GfK consumer confidence index to -19 was blamed on concerns around the increasing cost of living in the months ahead.
All measures were down in comparison to the last announcement on 17 December:
GfK client strategy director Joe Staton said: “The UK’s financial pulse weakened further this January driven by concerns over personal finances and the general economic situation.
“Despite some good news about the easing of Covid restrictions, consumers are clearly bracing themselves for surging inflation, rising fuel bills and the prospect of interest rate rises.”
He added: “The four-point fall in the major purchase index certainly suggests people are ready to tighten their belts. Will the mood brighten when the latest wave of the pandemic subsides and Covid numbers improve? It seems unlikely because it’s the cost-of-living squeeze that’s worrying us now and this will affect us for months to come.”
