// Consumer confidence has declined for first time since height of lockdown six months ago
// Parts of the UK are currently facing restrictions under the government’s tier 3 measures
// Consumer confidence dropped by 1.1 points from September to 101.3
Consumer confidence has dropped in October for the first time since the height of lockdown in April, as fears grow over a double-dip recession.
Many parts of the UK are currently facing restrictions again under the government’s tier 3 measures, which is leading to increased fears over a recession.
The YouGov and the Centre for Economic and Business Research found in the monthly consumer confidence survey that confidence fell for the first time since April, dropping by 1.1 points from September to 101.3.
- Retailers seek “pandemic clauses” to cut rent payments
- “Double dip” threat for consumer confidence as concerns about finances worsen
It marked the lowest reading since the survey began in April 2013, excluding the past six months.
“The survey may prove to be a turning point in consumer sentiment as the reality of a second wave sets in,” CEBR head of macroeconomics Kay Neufeld said.
“New local restrictions “seriously put the brakes on the economic recovery in the last quarter of the year.”
The survey also found that more than eight in ten people expect the economy to contract over the next year.
Four of the index’s eight measures of consumer confidence fell, with the outlook for people’s financial situation taking a downward turn.
That measure, compiled by asking households how they think their finances will change a year from now, fell by 5.6 points to 86, the steepest dip since March.
“These changes could be an early warning sign that the housing market is running out of steam,” YouGov and the CEBR said.