MNI DATA: UK Consumer Confidence Slumps in November: GfK

--UK November GfK Consumer Confidence Index -13 Vs -10 October

By Jamie Satchi

     LONDON (MNI) - UK consumer confidence deteriorated for a third straight

month in November, with GfK's long-running Consumer Confidence Index down three

points to -13, data published Friday showed.

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

deteriorations across all of the five sub-components, including a marked

seven-point decline in the Major Purchases Index -- alarming for retailers in

the run up to the festive season.

     November's result left the headline index at its lowest level since

December last year, and, more alarmingly, it was last lower five-and-half years

ago.

     "The view on the general economy in the coming 12 months fell four points,

as did the perception of the past year's personal finances. Overall, we are now

back at the -13 level we saw at the end of last year," said Joe Staton, Client

Strategy Director at GfK. 

     --CONSUMPTION APPETITES PLUMMET

     The Major Purchase Index, which asks households how willing they are to

spend on big ticket items, followed up October's two-point loss with a further

seven-point deterioration in November, something Staton described as "unhappy

news" for retailers.

     Media reports over the weekend had reported more lacklustre Black Friday

shopping activity with softer high-street footfall, albeit offset to a degree by

higher online sales. 

     --BREXIT CONCERNS INTENSIFY?

     The headline index now sits below its 12-month average of -9.0, and the

post-Brexit average of -8.0. In contrast, in the year running up to the Brexit

vote, the index averaged +2.

     Thus households have remained pessimistic throughout the entirety of the

Brexit negotiation period and, as we enter the final phase of negotiations, it

appears confidence is not only deteriorating further but at a faster pace.

     The three-point monthly drop was the largest decline since June 2017 and

follows falls of 1 and 2 points respectively in the previous two months. 

     The Personal Financial Situation Over Next 12 Months index fell by a point

to +3 this month, while households' assessment of the general economic

situation, also over the next 12 months, declined an additional four-points to

-32.

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

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