Consumer Confidence at Lowest in 15 Months in Light of Impending EU Vote
Uncertainty over the UK’s EU membership and the ongoing Eurozone crisis are suggested as possible factors for decline in optimism
UK consumer confidence is at its lowest level in 15 months, according to a report by GfK out today.
GfK’s survey of 2,000 people found that its consumer confidence index dropped to -3, compared to 0 in March, making it the weakest reading since December 2014.
The market research group has suggested that the upcoming EU referendum and the financial instability of the Eurozone has created a sense of ‘uncertainty’ among consumers.
Despite this, economists are divided over how much of the recent slowdown in UK growth is actually down to fears of a potential Brexit. Official figures this week showed GDP growth dropped to 0.4% in the first quarter of 2016 from 0.6% in the final three months of 2015 but the Office of National Statistics (ONS) said this was not linked to the impending referendum.
Joe Staton, head of market dynamics at GfK, said:
“Mixed messages about a post-Brexit world and the ongoing Eurozone crisis are casting a cloud over our economy. Against this backdrop, even faith in our personal economic fortunes has taken a battering contributing to the overall fall in the numbers.”