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.
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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.