UK consumer confidence fell in October, GfK says -UPDATE
Wed 31 Oct 2012
LONDON (SHARECAST) - Consultancy GfK´s gauge of consumer confidence for the month of October has fallen to -30 points, from -28, its lowest level since April.
The consensus estimate had been for an unchanged reading.
Of the four sub-indices only one improved, that which measures consumers´ sentiment as regards the general economic situation in the recent past. It rose by 1 point to -53.
The sub-index measuring participants´ own past financial situation retreated to -24 points (from -21), while the forward looking measure declined to -13, from -8.
The gauge linked to the climate for major purchases also deteriorated, with the relevant index falling to -33 from -31.
For economists at Barclays Research: “What is particularly concerning is the fact that consumers remain worried about their financial situation (…) In our view, this suggests downside risks to the near-term outlook for private consumption – although sentiment may recover in the wake of more upbeat media commentary surrounding the better-than-expected third quarter preliminary GDP estimate. It should also be borne in mind that retail sales posted solid growth of 1.0% quarter-on-quarter in the three months to September, despite consumer sentiment remaining subdued throughout the quarter.
“In any case, we expect the recovery in household consumption to be measured, with spending broadly flat in Q4 before it resumes modest growth in 2013.”