Consumer confidence slumps in November

Consumer confidence in November has fallen to its lowest level in a year, thanks to growing Brexit uncertainty.

The latest Consumer Confidence Index from YouGov and the Centre for Economics and Business Research (Cebr) indicates that the headline figure fell by 1.4 points in November, declining from 108.1 in October to 106.7.

YouGov and Cebr highlighted that any score over 100 means more consumers are confident than unconfident, but this is only the third time since the EU referendum in 2016 that it has been below 107.

Additionally, the index is still below where it was before the UK voted to leave the EU.

To collect data for the index, YouGov asked over 6000 respondents questions about household finances, property prices, job security and business activity – both over the past 30 days and looking ahead to the next 12 months.

The analysis shows that seven of the eight measures declined in November while only one improved. Several measures have also seen marked falls.

Job security over the past 30 days fell by its largest amount since March, while job security over the coming 12 months saw its largest fall since May.

Both household finance metrics have also taken a hit. The backward-looking measure has declined by its greatest amount since December 2017, while the forward-looking one has seen its greatest month-on-month drop since last November.

Only expected house values over the coming year have improved.

Cebr head of macroeconomics Nina Skero said: “Although there is now a proposed Brexit deal on the table, the level of uncertainty is by no means subsiding.

“Questions over the likelihood of the UK Parliament backing the deal and the nature of the long term UK-EU relationship loom large.

“With this in mind, it’s little surprise that consumer confidence has dipped across all but one measure, bringing the headline figure to the lowest level in a year.”

Click here to sign up to Retail Gazette‘s free daily email newsletter