Consumer confidence in the UK fell in January to the lowest level in two years, a survey showed on Friday.
The Gfk consumer confidence index dropped to -29, as concerns over the inflationary trend, as well as the looming spending cuts by the government weighed in.
January saw decreases across all five measures; the most notable being in the major purchase” index, which dropped 21 points, a Gfk release said.
January’s eight point drop represents an astonishing collapse in consumer confidence. In the 35 years since the Index began, confidence has only slumped this much in a single month on six occasions, the last being November to December 1994, Nick Moon, MD of GfK NOP Social Research, said.
The index measuring changes in personal finances during the last twelve months has decreased two points this month, at -18; this is four points lower than this time last year.
The measure for the general economic situation of the country during the last twelve months has decreased by three points to –54; three points higher than this time last year.
The UK Consumer Confidence Survey was conducted between January 7-16 among a sample of 2000 individuals aged 16+ on behalf of the European Commission.