Despite Events, Uncertainty Around Brexit Weighs Heavily on Consumers
- Consumer confidence dropped in July despite the World Cup and heatwave
- GfK’s Consumer Confidence Index shows a one-point decrease compared to June
- Index has been at zero or below since February 2016
- People more optimistic about their financial situation but cautious about spending
- Major Purchase Index decreased two points this month
- Uncertainty around Brexit contributes to the decline in consumer confidence
Consumer confidence took a hit in July despite the positive impact of the World Cup and warm weather, according to GfK’s latest Consumer Confidence Index. The survey of 2,000 respondents revealed a one-point drop compared to June, with the index registering at zero or below since February 2016. While people were more optimistic about their financial situation, they remained cautious about spending due to slow wage growth and Brexit uncertainty. The Major Purchase Index fell two points this month, lower than July 2017 levels. Joe Staton, client strategy director at GfK, commented: ‘The World Cup, Wimbledon, and warm weather had little effect on consumer confidence, as the overall index has been negative since February 2016. Personal financial concerns and economic uncertainty are contributing factors.’
Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about consumer confidence dropping in July according to a survey by GfK’s Consumer Confidence Index, reasons for the drop (slow wage growth and Brexit uncertainty), and quotes from an expert on the topic. It also includes relevant details about people’s financial situation and major purchase index.
Noise Level: 4
Noise Justification: The article provides relevant information about consumer confidence and its factors, but could benefit from more in-depth analysis and context on the impact of Brexit and potential solutions to improve the situation.
Financial Relevance: Yes
Financial Markets Impacted: Consumer confidence and major purchase spending
Financial Rating Justification: The article discusses consumer confidence and its impact on spending, which can affect financial markets through changes in consumer behavior and economic outlook.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the text, but consumer confidence dropped slightly due to slow wage growth and Brexit uncertainty.
www.retailsector.co.uk