‘No festive cheer’ as consumer confidence falls
Households hit by interest rate hike, higher inflation and Brexit-related uncertainty ahead of Christmas
![shoppers](https://cdn.mos.cms.futurecdn.net/ThwHppYszUpPNiC25xQCPX-415-80.jpg)
Consumer confidence is at its lowest since the aftermath of the Brexit vote, in a worrying sign for retailers preparing for the Christmas shopping period.
The combined effects of the recent interest rate hike, higher inflation and Brexit-related economic uncertainty saw the GfK consumer confidence index record a two-point fall to -12 in November.
All five measures used to calculate the score dropped for the month, with the steepest fall recorded for major purchases, according to City AM.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
![https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516.jpg](https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516-320-80.jpg)
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Shoppers appear “resolutely gloomy” about the economic outlook in the run-up to the Christmas season, said Joe Staton, head of market dynamics at GfK.
“There’s no festive cheer,” he said. “The confidence trajectory is unquestionably negative and sadly no amount of tinsel or baubles will change it. We need some big, positive economic good tidings to reverse this downwards trend.”
The UK’s economic growth has slowed this year as higher inflation, largely driven by the fall in sterling since the Brexit referendum, has led to households tightening their belts, Sky News reports.
However, recent figures from the British Chambers of Commerce “suggested exporters were enjoying strong sales as they benefited from the weakness of the pound that makes their prices more competitive”, the broadcaster adds.
Create an account with the same email registered to your subscription to unlock access.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
How can we fix tourism?
Today's Big Question Local protests over negative impact of ever-rising visitor numbers could change how we travel forever
By The Week UK Published
-
Simone Biles: Rising – an 'elegantly paced and vulnerable' portrait of the gymnast
The Week Recommends Netflix's four-part documentary is more than a 'riveting comeback story'
By Irenie Forshaw, The Week UK Published
-
Paloma recipe: the cocktail of the summer
The Week Recommends This refreshing drink balances the fresh and fizzy taste of grapefruit soda with a subtle flavour of smooth tequila
By Rebekah Evans, The Week UK Published
-
Will the housing slump ever end?
Today's Big Question Probably not until mortgage rates come down
By Joel Mathis, The Week US Published
-
Are we getting a 'hard landing' after all?
Today's Big Question Signs of economic slowdown raise concerns 'soft landing' declarations were premature
By Joel Mathis, The Week US Published
-
Why au pairs might become a thing of the past
Under The Radar Brexit and wage ruling are threatening the 'mutually beneficial arrangement'
By Chas Newkey-Burden, The Week UK Published
-
Brexit: where we are four years on
The Explainer Questions around immigration, trade and Northern Ireland remain as 'divisive as ever'
By The Week UK Published
-
How did America avoid a recession in 2023?
Today's Big Question A downturn was inevitable. Until it wasn't.
By Joel Mathis, The Week US Published
-
Will the UK economy bounce back in 2024?
Today's Big Question Fears of recession follow warning that the West is 'sleepwalking into economic catastrophe'
By Chas Newkey-Burden, The Week UK Published
-
What rising gold prices can tell us about the economy in 2024
The Explainer Market hits all-time high, boosted by a weakening US dollar and rising global tensions
By Flora Neville, The Week UK Published
-
Would tax cuts benefit the UK economy?
Today's Big Question More money in people's pockets may help the Tories politically, but could harm efforts to keep inflation falling
By The Week UK Published