Consumer confidence fell by two points in March and “lockdown Britain” can only expect further deterioration as the coronavirus crisis begins to bite.
GfK’s Consumer Confidence Index fell to -9 last month but the market research firm stressed that the analysis took place in the first two weeks of March – when coronavirus was headline news but had not yet impacted the day-to-day lives of consumers.
Joe Staton, client strategy director at GfK said: “Against the threat of a dramatic slowdown in the UK economy due to the spread of Covid-19, the Consumer Confidence Barometer has weakened by two points this month. After a run of increasingly positive numbers since last December, we’re now seeing Very clear disruption.
“There’s a six-point drop in perceptions of the economy in the coming year, although the view on the Next 12 months for personal finances has recorded a softer decrease of three points. The steep eight-point fall in the Major Purchase Index is worrying news for retailers across the land. While we have a long way to drop before we match the devastating numbers seen in July 2008 when the Overall Index Score crashed to -39 points, lockdown Britain can only expect further deterioration.”