Consumer confidence flatlined in negative growth in November, marking four years since it had been into positive territory, according to the GfK Consumer Confidence Index.
The index, which measures general economic and personal financial situations and consumers’ spending and saving, showed that one measure grew, one remained unchanged and three measures decreased this month.
The overall index score for the month of November stood at -14, unchanged from October.
Consumers’ personal financial situation over the last year saw a decrease of one percentage point to 0, while optimism about personal financial situations over the next year remained flat at 1.
While concern over the general economic situation over the last year fell 1 percentage point to -34, the perspective outlook for the next year increased 3 percentage points to -34.
The major purchase index fell 1 percentage point.
Client strategy director at GfK Joe Staton flagged that consumer confidence hadn’t been positive since January 2016, and said “fantasy economics alone will not guarantee votes” at the upcoming election.
“The general election is potentially an opportunity to move us out of the doldrums – but for this to happen there must be a clear result. A hung parliament could be very damaging for consumer confidence and would surely deepen the obvious malaise that we see month after month. We have not seen a positive headline score since January 2016 – that’s nearly four years ago. Uncertainty is nobody’s friend,” he said.
“So, while many issues are under the spotlight in this election, political parties will need to satisfy voters that they will be effective for the wider economy and that, as a consequence, people will be better off next year and beyond. Consumers need to be convinced they will be able to balance their personal accounts beyond ‘just about managing’. Fantasy economics alone will not guarantee votes.”
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