The United Kingdom GfK consumer confidence, improved for the first time since January, but failed to tick above zero as the upcoming EU referendum weighed on consumer sentiments.
The GfK figure eased to -1 from -3 this month, as per the data released by GFfK showed. Also, a measure of the economic outlook eased to -13, from -14, presenting optimistic view of the Britain economy.
“We remain in the gloomy world of negative territory this month. Despite the tiny uptick this month, our confidence in economic matters, whether we look back or ahead 12 months, remains way below last year,” said Joe Staton, Head, Market Dynamics, GfK.
Consumers remained resilient through 1Q 2016 as household spending rose at the fastest pace in a year. However, declining business investment and slowdown in exports offset the rise. However, supporters of a Brexit ascertain the slowdown on weakness in global growth as the cause behind UK’s weak consumer confidence.
GfK’s gauge of consumers’ outlook for their personal finances remained unchanged for this month. The poll of 2,001 people took place between May 1 and May 16.
Howard Archer, Chief Economist at HIS Global Insight said that while rising employment and low inflation have supported consumer spending, the gap between earnings growth and consumer price inflation has curtailed to hurt consumer purchasing power.
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