UK Consumer Confidence Edges Up in September But Woes Persist
25 September 2020 - 7:29AM
Dow Jones News
By Xavier Fontdegloria
Consumer sentiment in the U.K. ticked up slightly in September
despite the increase in Covid-19 infections, but remained at
depressed levels amid economic headwinds, data from market research
firm GfK showed Friday.
The GfK consumer confidence barometer climbed to minus 25 in
September, an increase of two points compared with minus 27
registered in August.
The uptick was driven by British consumers' better perception of
their outlook regarding the general economy over the next year and
their intentions to purchase. This last measurement, along with
consumers outlook of their personal finances, are vital
considerations for retailers as the country enters the golden
quarter in the run-up to Christmas, said Joe Staton, client
strategy director at GfK.
Consumer confidence in the U.K. has been slowly recovering from
its near historic low of minus 36 registered in June, but remains
far from the minus 12 reading of September last year or February's
pre-pandemic level of minus 7.
Consumer confidence has crept forward for nearly four months
now, Mr. Staton said, but he wondered whether this fragile
improvement will last or if it is about to come to a grinding
halt.
Interviews for the survey were carried out between Sept. 1 and
14, before the government announced new restrictions to contain the
resurgence of Covid-19 in the country.
"Consumers are as jittery as stock markets right now and as the
U.K. government puts the brakes back on--and there may be more to
come--only an unbridled optimist will bet on confidence climbing
further," Mr. Staton said.
From the five subindexes that form the barometer, consumer
outlook of the general economic situation over the next year, the
major purchase index--which gauges demand among shoppers--and the
perception of the general economic situation over the last 12
months increased compared with August.
However, consumers assessment about their personal finances was
weak, data showed, with the subindex gauging the evolution over the
last 12 months declining to minus 7 and the outlook for the next
year unchanged at 1.
GfK based its reading on a survey of 2,000 adults and produces
the index on behalf of the European Commission.
Write to Xavier Fontdegloria at xavier.fontdegloria@wsj.com
(END) Dow Jones Newswires
September 25, 2020 02:14 ET (06:14 GMT)
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