By Daniel Hunter
Consumer confidence fell to a negative level in September, according to the GfK UK Consumer Confidence Index.
Consumer confidence fell by 2 points to -1, compared with August as four of the five indicators showed decreases.
But confidence is still considerably stronger than 12 months ago, with a 8 point rise.
In particular, consumers appear to be particularly worried about the next 12 months. Confidence for their personal finance situation over the next year fell by 4 points and confidence in the general economic situation was down 7 points.
Nick Moon, Managing Director of Social Research at GfK, said:
“Last month, I speculated that we may be in a new period of stasis for the index, and this month certainly fits into that pattern. There have now been five consecutive months where the index has been at 0 plus or minus 2 — within the margins of error one would expect on a sample of this size.
Over the same period, the objective macro-economic indicators have continued, for the most part, to be positive. One possible explanation for this positivity no longer being mirrored in the index is that many people are not themselves feeling any better off despite the growth in GDP, and this may be tempering the impact of positive media coverage of the economy.”
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