Consumer morale continued to fall this month as the second lockdown prompted a rise in pessimism over people’s finances.
GfK’s Consumer Confidence Index decreased two points to -33 for November, with three of the five measures dropping compared to October’s data. The other two were unchanged.
Joe Staton, Client Strategy Director GfK, commented: “Although there is no movement in our views on the economy, people are clearly losing their nerve regarding their personal finances with scores for the last 12 months and the year to come sharply down by seven points and five points respectively.
“This will deal a blow to any future rebound, because bullish consumer spending fuels the UK economy and low confidence is the enemy of recovery. The second lockdown couldn’t have come at a worse time for the UK’s high-street retailers and it’s no surprise that our major purchase sub-measure is once again mired deep in negative territory.
“On all fronts, economic headwinds still outnumber tailwinds and consumers can be excused for showing little in the way of Christmas cheer at present.”
NAM Implications:
- No surprises for realists, hopefully?
- And this low level of confidence translates into demand…
- …or lack of it.
- Meaning we are at the beginning of a long pathway to some recovery…
- Say ten years, unless you know something extra?
