LONDON (Reuters) – British shopper morale slid to a three-month low in October, dragged down by worries in regards to the financial outlook within the run-up to Brexit, a survey confirmed on Wednesday.
FILE PHOTO: A client walks via the underpass of Elephant and Castle site visitors roundabout in south London, Britain October 5, 2015. REUTERS/Neil Hall
The headline shopper confidence index from market analysis agency GfK fell to -10 in October, as anticipated in a Reuters ballot of economists, from -9 in September.
The index shouldn’t be seasonally adjusted and has an inclination to fall each October. Nonetheless, particulars throughout the survey confirmed that Britons’ worries about how the financial system will fare over the following 12 months had risen to the best since December.
With Britain scheduled to depart the EU in March, Brexit talks have stalled over a disagreement on the so-called Northern Irish “backstop”, an insurance coverage coverage to make sure there can be no return to a tough border on the island of Ireland if a future buying and selling relationship shouldn’t be agreed in time.
“The prospect of a no-deal/hard-deal Brexit must surely be weighing heavily on people’s minds, injecting a mood of despondency as to how people view their future personal finances and the longer-term economic outlook for the UK,” Joe Staton, director of consumer technique at GfK, mentioned.
He additionally highlighted a drop within the main purchases index — one thing that might spell bother for retailers forward of the essential Black Friday and Christmas promoting durations.
A Confederation of British Industry survey on Tuesday confirmed retail gross sales had grown rather more slowly than forecast in October.
The figures are more likely to curiosity Bank of England officers who are getting ready their newest quarterly outlook for Britain’s financial system, attributable to be launched at 1100 GMT on Thursday.
Other surveys of customers from IHS Markit and Thomson Reuters/IPSOS have additionally pointed to rising worries amongst households in regards to the monetary and financial outlook forward of Brexit.
GfK’s survey of two,001 folks was performed between Oct. 1 and Oct. 15 on behalf of the European Commission.
Reporting by Andy Bruce, modifying by David Milliken