UK Consumers’ Fear of No-Deal Brexit Dampens Spending Plans

  • Consumer confidence decreased in October due to Brexit anxieties
  • GfK’s consumer confidence index dropped by one point to -10
  • Lack of confidence affects retailers before Black Friday and Christmas period
  • General Economic Situation remains at -28, expectations for next 12 months decreased to -28
  • Major Purchase Index fell two points in October but is one point higher than last year
  • Austerity claims and lower retail price inflation not enough to boost consumer sentiment

The GfK consumer confidence index dropped by one point to -10 in October, reflecting consumers’ concerns over a potential no-deal or hard Brexit. This decline is expected to affect retailers during the upcoming Black Friday and Christmas shopping season. The General Economic Situation remained at -28, while expectations for the next 12 months decreased to -28. The Major Purchase Index fell two points in October but increased by one point compared to last year. Despite claims of austerity ending and lower retail price inflation, consumer sentiment remains low due to Brexit uncertainties.

Factuality Level: 8
Factuality Justification: The article provides accurate information about the decrease in consumer confidence index and its impact on retailers during key shopping periods. It quotes an expert’s opinion on the situation and mentions relevant factors affecting consumer behavior such as Brexit concerns and economic outlook.
Noise Level: 3
Noise Justification: The article provides relevant information about the decrease in consumer confidence due to Brexit concerns and its potential impact on retailers during key shopping periods. It also includes insights from an expert on the subject. However, it could benefit from more data or analysis of long-term trends and possible solutions.
Financial Relevance: Yes
Financial Markets Impacted: Retail sector
Financial Rating Justification: The article discusses the impact of Brexit on consumer confidence, which can affect retailers’ sales and overall economic outlook, thus impacting financial markets related to the retail sector.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the last 48 hours.

Reported publicly: www.retailsector.co.uk