UK consumer confidence dipped slightly in October, but remained way above expectations post-Brexit.
The GfK consumer confidence index released this morning revealed a dip down to -3 per cent. Although this is down from September‘s -1, it quashes analysts‘ fears of a freeze in spending and.
Following the result of the EU referendum the index plummeted to -9, placing this month far above the initial predictions after the vote.
Economists had predicted that a slowdown big ticket item spend would begin to show during the month, however there have been no signs that purchases were beginning to decline, the index found.
Rising inflation over the coming months is predicted to begin to take its toll on both spend and confidence, as the initial pangs of the depreciated pound start to show.
“Declining optimism about economic prospects for the wider UK economy has depressed the consumer mood this month,” GfK head of market dynamics Joe Staton said.
“Despite the continuing feel-good factor arising from persistent low interest and inflation rates, sterling‘s sharp decline is arguably stoking fears that price rises will hit UK living standards hard next year.
“However, views on the state of our personal financial situation for the past year and next continue to remain positive (when comparing with 2015 levels), underlining that we feel more optimistic about situations we can control.
“With Black Friday approaching and Christmas trading already underway, will the remainder of 2016 see halcyon days for retailing? Are we gearing up to shop now and pay later amid concerns over rising high street prices?”