UK Consumer Sentiment Remains Lacklustre in September: GfK

--September GfK Consumer Confidence Index -9 Vs -10 August

By Jamie Satchithanantham

     LONDON (MNI) - Consumer sentiment remained muted in spite of rising to a

five-month high in September, as consumers continue to grapple with in squeezed

incomes and economic uncertainty, a report published Friday showed.

     The GfK September Consumer Confidence Index rose a single point to -9 from

-10 in August. Three of the five components that make up the headline index were

higher on a month ago readings.

     September's result marks the second consecutive rise in consumer confidence

after the GfK confidence measure fell to a joint-26-year low in July.

     Consumers felt less optimistic about their personal finances in September.

The Personal Finance Situation indicator, looking at the past 12 months, fell 3

points to -1 while the same indicator gauging the forthcoming next 12 months

fell a point to +4. 

     Despite the deterioration in their finances consumers, appeared to

partially look through the softer conditions, as they have done since the 2016

referendum vote,   reluctant to wind down spending plans and even drawing on

savings to finance them.

     The Savings Index, not a sub-component of the main headline index, fell

three points +3 in September while the Major Purchase Index rose a point to +1. 

     Though households held improved perceptions of the past and future economic

situation in September, in comparison to the same time last year these

perceptions were markedly lower. 

     Consumers' assessment of the general economic situation over the past year

rose two points to -28 in September, some 12 points below last September's

level, while their assessment of the next 12 months rose 3 points to -24, 15

points shy of the level set a year ago.

     Joe Staton, Head of Market Dynamics at GfK, said: "Consumers appear to be

in a mixed mood - with some confidence measures up and others down - yet there's

a strong note of defiance. Many commentators expected shoppers to cut back on

spending thanks to the lower purchasing power that arises from higher inflation

and weak wage growth. But consumers are still spending out there, and have

repeatedly defied predictions of a downturn since last year's Brexit vote,

partly by running down savings and/or borrowing more."

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

[TOPICS: MABDS$,M$B$$$,M$E$$$]