Pessimism Reigns as 2018 Ends Amidst Economic Uncertainty

  • Consumer Confidence Index decreased by one point in December 2018 to -14
  • General economic situation measure for last 12 months dropped by two points to -31
  • Expectations for next 12 months decreased six points to -38, down from December 2017 levels
  • UK consumers ending 2018 on a pessimistic note
  • Increase in ‘major purchases’ measure may be temporary for retailers
  • Ever-rising costs and Brexit uncertainty contribute to consumer despondency

The GfK Consumer Confidence Index fell in December 2018, reaching a five-year low. The measure for the general economic situation during the last 12 months dropped to -31, matching levels from December 2017, and expectations for the next 12 months decreased to -38, down from December 2017 levels. UK consumers are ending the year with a pessimistic outlook on the economy due to rising costs, higher inflation, and Brexit uncertainty. Joe Staton, client strategy director at GfK, stated that consumer confidence is low as they face an uncertain economic future in 2019.

Factuality Level: 8
Factuality Justification: The article provides accurate information about the decrease in GfK’s Consumer Confidence Index and the reasons behind it, such as rising costs, inflation, and Brexit uncertainty. It also includes expert opinions from Joe Staton, which adds credibility to the report.
Noise Level: 3
Noise Justification: The article provides relevant information about the decrease in consumer confidence and economic outlook in the UK, with quotes from an expert to support the claims. However, it could benefit from more context or analysis on the reasons behind the drop and potential consequences of this trend.
Financial Relevance: Yes
Financial Markets Impacted: UK retail sector, consumer spending
Financial Rating Justification: The article discusses the decrease in GfK’s Consumer Confidence Index and its impact on consumers’ outlook for the economy and their spending habits, which can affect the UK retail sector and overall financial markets.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no mention of an extreme event in the text.

Reported publicly: www.retailsector.co.uk