UK consumer confidence has dropped to -7% in the third quarter of 2018.
According to Deloitte’s consumer tracker, confidence fell three percentage points, a decrease “driven by consumers feeling less optimistic about levels of disposable income and personal debt”.
This is the first fall in consumer confidence since the second quarter of 2017, and follows a year of consistent growth which culminated in record levels of confidence in the second quarter of this year.
The quarterly survey of 3,105 UK consumers, taken between 21 and 29 September, found they are “significantly less confident about their levels of household disposable income”. This measure fell by eight percentage points compared to the second quarter – the sharpest quarterly fall since the tracker began in 2011.
Confidence in levels of debt declined by five percentage points.
Ian Stewart, chief economist at Deloitte, said: “The reality of higher inflation and August’s interest rate rise has dented optimism about spending power. Meanwhile uncertainty and the manner in which the UK exits the EU in less than six months’ time is creating an additional headwind for consumers.”