“Unquestionably negative” drop in consumer confidence in November

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Black Friday weekend has failed to increase confidence among shoppers, as November marks the 20th consecutive month of decline.

According to GfK’s Consumer Confidence Index, confidence decreased by two points during the month to -12 as all five measures used to calculate the score dropped.

This is the lowest score seen since the Brexit vote last year.

November’s figures were pulled down by a six-point drop in the Major Purchase Index, marking an eight-point decline year-on-year.

Confidence in personal finances also dropped one point to -1, two points lower than this time last year.

Meanwhile, the measure of the UK’s general economic situation during the last year dropped three points to -32, while expectations for the year ahead dropped two points to -28.

This is seven points and six points lower than last November respectively.

“Household jitters following the recent interest rate hike, squeezed incomes, higher inflation, and economic uncertainty have dampened the consumer mood across the UK,” GfK head of market dynamics Joe Staton said.

“Perhaps of most concern during this key Christmas trading period is the plunge in the Major Purchase Index (a sharp six-point drop).

“Many retailers have been hit by the slowdown in consumer spending as households begin to feel the pinch and cut-back on their budgets.

“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 – some snap we can put into our Christmas crackers. But where will the index be next month?”

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