UK consumer confidence fell to its lowest ebb since the spring as coronavirus restrictions tightened, leaving one in three hospitality businesses wondering whether they will survive.
The GfK consumer confidence index slipped two points to -33 in November, hitting the lowest levels seen since May.
The survey found that consumers in particular were gloomy about the outlook for their personal finances which is reflected in the uncertain job market and low business confidence, which GfK said could lead to weakened spending.
Consumer confidence in their personal finances over the previous year and the year ahead dropped -7 and -5 respectively.
The major purchase indicator slipped a further one percentage point to -28 while the savings index slipped a further three points to 11.
Confidence in the general economy was the most resilient in terms of stability month-to-month, but also started at the lowest ebb in terms of satisfaction. Both consumer confidence in the economy over the last 12 months and the next 12 months stood steady at -67 and -50 respectively.
“People are clearly losing their nerve with regards to their personal finances,” GfK client strategy director Joe Stanton said. “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.”
Stanton added: “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 sadly and consumers can be excused for showing little in the way of Christmas cheer.”
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