Consumer confidence dives as economic growth hits 5-year low

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Consumer confidence fell in April despite expectations of a revival following a surprise boost last month.

According to the long-running GfK Consumer Confidence Index, sentiment fell to -9 in April, down from -7 last month, when it lifted three points and hit a 10-month high.

This marks the 28th consecutive month that consumer confidence was in negative territory, as consumer’s outlook for the financial situation over the next 12 months fell dramatically from 10 to four.

An index measuring changes in personal finances over the past 12 months also fell four points to -1.

“Hope springs eternal for better numbers but the continued uncertain economic forecast means that the sun is not yet shining brightly for UK consumers,” said Joe Staton of GfK.

“Consumer confidence is stuck in the doldrums.”

The news comes as the Office for National Statistics (ONS) revealed that the UK economy had grown just 0.1 per cent over the past quarter, the lowest level since 2012.

Although some of the reason for the five-year low was due to poor weather, which battered retail sales, the ONS was keen to point out that the issue was much wider.

This sent the value of the pound diving a whole cent against the dollar, as it becomes less likely the Bank of England will raise interest levels next month.

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