UK shopper morale sinks to lowest since late 2023: GfK survey

(Reuters) – British shopper confidence sank this month to its lowest stage in over a 12 months, marking the steepest drop between the months of December and January since 2011, in keeping with a survey that added to indicators of a slowdown within the economic system.

The month-to-month shopper confidence index revealed by market analysis agency GfK fell in January to -22 from -17 in December, its lowest studying since December 2023. A Reuters ballot of economists had pointed to smaller decline to -18.

The GfK survey shouldn’t be adjusted for seasonal differences and has proven a bent in recent times to fall in January, however the newest drop was bigger than common.

All 5 of the survey’s parts declined, echoing a run of downbeat financial alerts since finance minister Rachel Reeves’ Oct. 30 price range, which raised taxes on companies to assist enhance funding for funding and public providers.

“These figures underline that customers are shedding confidence within the UK’s financial prospects,” stated Neil Bellamy, shopper insights director at NIQ GfK.

He pointed to a giant rise in GfK’s financial savings index – which isn’t a part of the general shopper confidence index – for instance of the cautious temper amongst households.

Development in Britain’s economic system has slowed to crawl, in keeping with the newest official knowledge, though many economists nonetheless suppose the upper authorities spending in Reeves’ price range will assist to boost development – albeit quickly – later this 12 months.

The Financial institution of England is broadly anticipated by traders to chop rates of interest on Feb. 6.