Brexit Uncertainty Weighs on Consumer Sentiment

  • UK consumer confidence down five points year-on-year in January
  • GfK’s Consumer Confidence Index decreased to -14 in January 2019
  • General economic situation for the last 12 months dropped to -35
  • Expectations for next 12 months also decreased by one point to -39
  • Major purchase index remained at +2, up from January 2018
  • Concerns about wider economic prospects impacting Overall Index Score

The GfK Consumer Confidence Index fell by five points year-on-year in January 2019, reaching -14. The measure for the general economic situation during the last 12 months dropped four points to -35, six points lower than January 2018. Expectations for the next 12 months also decreased by one point to -39. Despite improvements in personal finances due to strong employment, low interest rates, and rising household incomes, concerns about the country’s economic outlook are affecting the Overall Index Score. Joe Staton, client strategy director at GfK, noted that consumer confidence may drop further as Brexit uncertainty continues.

Factuality Level: 8
Factuality Justification: The article provides accurate and relevant information about GfK’s Consumer Confidence Index, including specific numbers and insights from Joe Staton, client strategy director at GfK. It also connects the data to current events such as Brexit, providing a potential explanation for the decrease in consumer confidence.
Noise Level: 3
Noise Justification: The article provides relevant information about the decrease in GfK’s Consumer Confidence Index and offers insights from an expert on potential reasons behind it. It also includes data and comparisons to previous years. However, it could benefit from more analysis or context on the implications of these changes for consumers and businesses.
Financial Relevance: Yes
Financial Markets Impacted: Consumer confidence and major purchases
Financial Rating Justification: The article discusses GfK’s Consumer Confidence Index, which reflects consumer sentiment towards personal finances and economic prospects. This can impact spending habits and major purchases, affecting companies in retail and related industries.
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