Gfk NOP Ltd. one of the world’s leading market research companies has said that consumer confidence in the UK fell from its previous 18-month high level in December.
The sentiment Index fell from minus 22 in November (the strongest reading since May 2011) down to minus 29 in December. The drop was more than expected as economists had predicted a fall to minus 25.
“Consumer sentiment is still fragile despite the fact that Christmas is less than a week away,” said Nick Moon, managing director of social research at GfK.
The British outlook for the economy over the coming year has fallen by 16 points to minus 32; it’s lowest for six months whilst the outlook for potentially earning more for their personal finances remained at the minus 7 mark. The climate for making major purchases dropped 1 point to minus 27.
According to the Office of National Statistics retail sales remained unchanged for November after dropping by 0.7% in October. On Wednesday the Confederation of British Industry said that its gauge for annual sales growth fell to 19 in December from 33 in November.
The decline in confidence can be blamed on consumers coming under increasing pressure from inflation and the government’s wave of austerity measures. Wages have not improved at a pace fast enough to keep up leading to many working families being forced to cut back on their spending habits.
The Pound to Euro exchange rate is currently trading at 1.2297
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The Euro to US Dollar exchange rate is currently trading at 1.3208
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