Consumer confidence drops as “big black Brexit cloud” strikes

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Consumer confidence GfK Brexit
“In the face of continued Brexit uncertainty, the overall index score fell this month," says GfK
// Consumer confidence declined in October thanks to political & Brexit uncertainty
// Consumer confidence was down two points to -14 in October according to the GfK Consumer Confidence Index

Consumer confidence has dropped in the month of October as political and Brexit uncertainty continued to affect the high street.

Consumer confidence was down two points to -14 in October – when all five measures of sentiment decreased, according to the GfK Consumer Confidence Index.

“In the face of continued Brexit uncertainty, the overall index score fell this month,” GfK client strategy director Joe Staton said.


READ MORE: Consumer confidence falls as Brexit uncertainty continues to affect jobs


“Importantly, the ongoing machinations in Westminster appear to be impacting how we view our personal financial situation for the coming year, with a notable fall of -3 in this measure in October,” he said.

“This deterioration in sentiment regarding our personal financial affairs is worrying as strong consumer spending has been the main driver of economic growth since the referendum in 2016 against a backdrop of low inflation, low interest rates, low wage growth and high employment.

“But Brexit’s continuing uncertainty and the spectre of a general election is not helpful. People can only feel confident if they believe the external environment is stable, yet consumers are witnessing too many Brexit shifts and surprises, too many Brexit timelines and counter-proposals, to justify any longer-term confidence. The big black Brexit cloud is refusing to shift.”

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