GfK’s Index Drops to -14 Amid Brexit Nerves

  • UK consumer confidence decreases three points in August
  • GfK’s Consumer Confidence Index drops to -14
  • General economic situation index falls by two points to -34
  • Expectations for next 12 months decrease six points to -38
  • Major purchase index down three points to +1
  • Joe Staton warns of potential financial crisis-level drop in consumer confidence

The GfK Consumer Confidence Index has taken a three-point hit in August, reaching -14. The measure for the general economic situation over the last 12 months dropped two points, eight points lower than the same period last year. Expectations for the next 12 months have also decreased by six points to -38. Joe Staton, GfK’s client strategy director, warns that if this trend continues, consumer confidence could approach worrying levels seen during the 2008/2009 financial crisis. He advises monitoring the situation closely.

Factuality Level: 10
Factuality Justification: The article provides accurate information from the GfK Consumer Confidence Index and includes expert commentary on its implications for the economy and personal finances.
Noise Level: 3
Noise Justification: The article provides relevant information about the decrease in consumer confidence index and its components, as well as an expert’s opinion on the potential consequences of the trend. However, it lacks a more in-depth analysis or exploration of possible reasons behind the decline and does not offer specific solutions or insights for readers to apply.
Financial Relevance: Yes
Financial Markets Impacted: Consumer Confidence Index, personal finances, and major purchase index
Financial Rating Justification: The article discusses the decrease in GfK’s Consumer Confidence Index, which can impact consumer spending and businesses’ sales. It also mentions a potential connection to the 2008/2009 financial crisis, indicating its relevance to financial topics.
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