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UK Consumers Gloomy for a Decade
23 Jan
Summary
- Consumer confidence has been negative for ten years, hitting -22.
- B&M and Primark issued profit warnings due to falling sales.
- The UK economy is compared to an untethered boat drifting at sea.
British consumer confidence has experienced a decade-long slump, with the GfK barometer recently falling five points to -22. This persistent negativity reflects a deep-seated lack of faith in the wider economy, which is being compared to an 'untethered boat drifting slowly out to sea'.
Several major retailers have felt the impact, with B&M issuing its third profit warning since summer after a 0.6 per cent sales drop in the quarter to December 27. Primark also confirmed weaker sales during the crucial Christmas period, blaming a challenging clothing market.
The Confederation of British Industries noted a continued contraction in retail sales volumes in January, with expectations of a further decline next month. This downturn, coupled with upcoming cost increases such as business rates and wages in April, paints a grim picture for the High Street.
