UK consumer confidence drops to four month low

British consumer confidence dropped to a four month low in October, the latest survey from GfK revealed on Friday.

GfK’s monthly consumer sentiment indicator fell to +2 in October from +3 in the previous month.

The index includes views on households’ personal financial situation and their outlook for the economy.

All five of the measures used to calculate the consumer sentiment dropped in October.

The index that measures changes in personal finances over the past year was down two points to +1, while the forecast for personal finances over the next year fell one point to +6.

The research revealed that Britons are feeling even less confident about the general economic situation of the country.

The measure for the economic situation of the country over the last year dropped six points in October to -3, while expectations for the economic situation over the next year was down five points to -2.

Joe Staton, Head of Market Dynamics at GfK, commented on the results:

“Consumers are in a depressed ‘back-to-school’ mood this month with a dip in people feeling good about the wider economy and their own personal economic circumstances. Across the board, all components of the Index have dropped despite a positive UK news agenda of continued near-zero inflation, low interest rates and levels of unemployment, UK wage growth at a six-year high and the ever increasing value of our homes.

The biggest decrease in the Index this month comes in how we think the general economic situation in this country has changed over the past 12-months (minus six points) and our expectations for the general economic situation in this country over the next 12-months (minus five points).”

Earlier this month the International Monetary Fund said that it expects UK economic growth to slow to 2.2 percent next year from 2.5 percent.