U.K. consumer confidence slightly falls in Oct on concerns over economic outlook

Consumer confidence in the United Kingdom slightly fell during the month of October, governing concerns over the country’s economic prospects in the future.

U.K.’s consumer confidence fell by two points in October and stood at minus 3. Economists polled by Market participants had expected a smaller, one-point decline, data released by the European Union’s executive by market researchers GfK U.K. Ltd. showed Friday.

The decline in the October index figure steepened the drop in consumer confidence to levels seen in the run up to the June 23 EU referendum. It posted the steepest monthly drop, following Britain’s vote to exit from the European Union; however, sentiment subsequently recovered, reaching the pre-referendum level last month.

Meanwhile, this month’s decline was driven primarily by Britons’ pessimism about the country’s general economic situation over the next year, the GfK data showed. The latest figure is based on a survey of 2,001 people, conducted between Oct 1 and Oct 15.

"Despite the continuing feel-good factor arising from a persistent low interest and inflation rates, Sterling’s sharp decline is arguably stoking fears that price rises will hit U.K. living standards hard next year," WSJ reported, citing Joe Staton, Head, Market Dynamics, GfK.