By Daniel Hunter
Consumer confidence remained steady in November, according to the latest GfK Consumer Confidence Index.
The index score is calculated by focusing of five key indicators. Gfk said two of these remained steady, two fell and one grew strongly.
Confidence over personal finances over the past 12 months remained the same, as did confidence over the general economic situation in the last 12 months.
But consumers were less confident about those indicators looking forward to the next 12 months - both falling by two points.
However, there was a five point rise in confidence over major purchases like furniture, cars or expensive electrical goods.
The lack of growth, and fall in two indicators, perhaps paint a gloomy picture of consumer confidence. But it is much stronger than this time last time.
The overall index score is 10 points higher than it was in November 2013, while the five key indicators are up by 10, six, 20, one and 13 points, respectively.
Nick Moon, Managing Director of Social Research at GfK, said: “This is the eighth month in a row that the Index has stood within two points either way of -1. We are clearly in very different territory to the period between April 2013 and June 2014 when there was a dramatic overall rise. Sluggishness like this has happened before, most notably from July 2011 to October 2012, so it is quite possible this flat period will continue for some time longer. Were it the same length as the last one this flat period would go on right up till the election.
The Government will be hoping to go into the General Election on a rising tide, and there is clearly scope for this: since the Index began in 1974 we have seen scores of +10 or higher on several occasions. But unless the public gets another burst of good economic news it’s hard to see this happening anytime soon.”
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