MNI: UK Consumer Confidence Hits Four Year Low In December

-UK Dec GfK Consumer Conf Index -13 Vs -12 Nov; Joint Lowest Since Dec 2013

By Jamie Satchithanantham

     LONDON (MNI) - UK consumer confidence ended 2017 on a sour note, with

sentiment receding to a level last seen as low exactly four years ago, a survey

by GfK found.

     The GfK Consumer Confidence Index (CCI) fell for the third consecutive

month to -13 in December from -12 in November, matching both its December 2013

and August 2013 levels. It last sat below this level in July 2013, when it stood

at -16. 

     The CCI's 12 month average in December was -8.75, its lowest such reading

since May 2014 (-9.83). December's outturn means the index has not been in

positive territory for one month shy of two years - January 2016 was the last

time that the Index came in above zero (+4).  

     Consumers were just as pessimistic about their personal finances and the

prospective health of the wider economy in December as in November. The Personal

Finances Situation over the next 12 months Index held firm at +2 while the

General Economic Situation over the next 12 months Index also remained unchanged

at -28. 

     Despite increased retail promotions, consumers' appetite for bigger

purchases decreased. The Major Purchases Index, an indicator of consumers'

propensity to buy big ticket times in coming months, fell to -4 in December from

-3 in November. 

     The Savings Index fell in December, dropping 4 points to +4, indicating

that consumers perhaps drew on savings to fund what spending they did make

during the month. 

     "We need to see several issues move on before the downward trend of the

consumer mood changes. We need to have a better sense of how Brexit will pan

out, and also of how quickly and how far interest rates will rise. But none of

this will be resolved quickly so there's every likelihood that 2018 will take us

lower," Joe Staton, Head of Market Dynamics at GfK, said.

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

--MNI London Bureau; tel: +44 203-586-2223; email: david.robinson@marketnews.com

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