Steep drop in consumer confidence amid concerns of ‘dark days ahead’

Consumer confidence has suffered a steep driblet amid signs that households spot “dark days ahead” for the economy, according to a long-running survey.

GfK’s Consumer Confidence Index fell by 5 points to minus 22 successful January, with each measures that marque up the wide people down connected past month.

The scale shows peculiarly steep falls successful user views connected the wider UK economy, some looking backmost a twelvemonth – down 7 points to minus 46, and 5 points little than past January – and for what is successful store for the adjacent 12 months – dropping 8 points to minus 34 and 13 points down connected a twelvemonth ago.

The forecast for idiosyncratic finances implicit the adjacent 12 months fell 3 points to minus 2 – 2 points little than this clip past year.

The large acquisition scale – a measurement of assurance successful buying big-ticket items – was down 4 points to minus 20.

The savings scale leapt 9 points successful January to affirmative 30 successful a motion that expanding numbers of radical were considering putting wealth speech for “safety”, GfK said.

Neil Bellamy, user insights manager astatine GfK, said: “New twelvemonth is traditionally a clip for change, but looking astatine these figures, consumers don’t deliberation things are changing for the better.

“These figures underline that consumers are losing assurance successful the UK’s economical prospects.

“While the savings scale connected information to prevention wealth is not included successful the calculation of the wide scale score, it’s notable that it has leapt 9 points successful January to affirmative 30.

“This crisp summation is unwelcome due to the fact that it’s different motion that radical spot acheronian days up and are truthful reasoning of putting wealth speech for safety.”