UK consumer confidence up despite Brexit ‘fears’

Gfk’s long running Consumer Confidence Index Score went up by one point in February to -13, despite the continuous uncertainty surrounding Brexit.

The measure for the general economic situation of the country during the last 12 months increased by two points to -33 this month, four points lower than February 2018, and expectations for the general economic situation over the next 12 months increased by one point to -38.

Additionally, the major purchase index increased by three points during the month to +5 – five points higher than this time last year. The firm said despite a slowdown in overall growth and concerns about the impact of Brexit uncertainty on the UK economy, “topline consumer confidence is stable again this month”.

It added that Overall Index Score is not showing any sign of making the “dramatic drop” seen after the June 2016 Brexit Referendum or in the early days of the last financial downturn.

Joe Staton, client strategy director at GfK, said: “While the view on personal finances looking at the year to come is still marginally positive, the continuing depressed sentiment towards the general economic situation might point towards the calm before the storm of post-Brexit headwinds and potential negative economic outcomes.

“Are we on the edge of some kind of economic or livelihood precipice? Consumers are like markets, they respond to certainty and that’s in short supply just now. It is worth bearing in mind that many economic indicators (employment levels, wage growth) remain positive. But it is frankly amazing that confidence is so stoic and stable in a world of sharp political instability and fear of the unknown.”