GfK’s consumer confidence index for U.K. drops in April

GfK’s consumer sentiment index for the U.K. fell one point in April to -7 from March’s -6. This is in line with consensus forecast. Out of five measures, four measures dropped. Only the major purchase index showed an increase.

“In the face of widespread reports of rampant inflation, stagnating wages and anxiety over our borrowing binge, UK consumer confidence is surprisingly stable. Although the Overall Index Score remains in negative territory, and has dipped this month, we have not seen any evidence of the predicted post-Trigger downturn, despite high levels of concern about the general economic situation of the country”, said Joe Staton, Head of Market Dynamics at GfK.

Consumer continue to be optimistic about the personal finances state and report that now is a good time to purchase. Meanwhile, the measure for the General Economic Situation of the U.K in the past 12 months has dropped two points to -23, nine points below the one recorded in April 2016. Expectations for the General Economic Situation over the next 12 months have fallen by one point to -21 in April. This is seven points lower than April 2016, stated GfK.