MNI DATA: UK Consumer Confidence Slips Back Down In Sept: GfK

--UK September GfK Consumer Confidence Index -9 Vs -7 August

By Jamie Satchi

     LONDON (MNI) - UK consumer confidence worsened in September, with the GfK's

long-running Consumer Confidence Index down by two points to -9, the latest

survey data found.

     The slide in September's GfK Consumer Confidence Index was driven by

deteriorations across four of the five sub-components and gave back most of the

3-point gain notched in August, a gain that took the index to the joint-highest

level since May 2017. 

     September's -9 showing was largely in line with both the 12-month average

(-9.3) and the post-Brexit average (-8), highlighting that confidence whilst

subdued, has at least remained remained stable.   

     --BREXIT IMPACT

     Ahead of next year's formal divorce from the European Union, households

were less confident in their financial position and more pessimistic over the

general economic outlook.   

     The 'Personal Financial Situation over next 12 months' index slipped three

points to +5, only higher by last September's outturn by a solitary point. 

     Meanwhile, assessments of the general economic condition fell by two points

to -28, level with both the July outturn and the result recorded a year ago. 

     Uncertainty across both households and businesses has intensified in recent

weeks as UK Prime Minister Theresa May attempts to strike a post-Brexit deal

with the European Union. 

     --ECONOMIC UNCERTAINTY 

     "When respondents talk about their personal finances, the scores are still

positive. But for the general economy, they can only reflect on the obvious

uncertainty surrounding Brexit. That poor view of the wider economy is keeping

the headline score negative - the last positive headline was the +4 in January

2016," said Joe Staton, Client Strategy Director at GfK.

     "The danger is that consumers might capitulate on how they feel about their

personal finances. If that happens, we'll see very sharp drops indeed in the

Overall Index Score in the months up to March 2019," he added.

     --MAJOR PURCHASES UPSIDE STRENGTH

     The only index not to lose ground in September was the 'Major Purchase

Index', which held firm at August's +6 reading, in positive territory for only

the second time since May. The result suggests that households remain fairly

open to making to a major purchase.

     The UK Consumer Confidence Survey was conducted by GfK between September 1

and September 15 on behalf of the European Commission.

--MNI London Bureau; +44 203-586-2226; email: jamie.satchithanantham@marketnews.com

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