20 Nov 2020
Consumer morale in Britain plummeted to a six-month low in November.
The second coronavirus lockdown prompted a spike in pessimism in regard to household finances, according to the findings of a survey published on Friday.
The consumer confidence index compiled by market research company, GfK declined to -33 from October’s reading of -31. Economists polled by Reuters forecast a reading of -34.
Over the past year, the survey’s measurement of personal finances has dropped to its lowest level since December 2013.
Joe Staton, client strategy director at GfK stated: “This will deal a blow to any future rebound because bullish consumer spending fuels the UK economy and low confidence is the enemy of recovery.”
In addition, the poll added to other indications of a weakening economy that resulted in a new round of support from the government and Bank of England in November for businesses and employees.
Back in September, the economy grew by a slower than forecast 1.1%, trailing behind other rich nations as it grappled to recover from the coronavirus pandemic shock, even before the most recent lockdown.
Staton went on to say: “The second lockdown couldn’t have come at a worse time for the UK’s high-street retailers and it’s no surprise that our major purchase sub-measure is once again mired deep in negative territory.”
The GfK Consumer Index is based on interviews carried out between 2-13 November, and according to Trading U, “is calculated as the difference between the proportion of consumers who report positive views and the proportion of consumers who have negative opinions about their financial situation and the economic situation in the country”.