Consumer confidence dropped in December for the second month running and consumers are wary about prospects in the new year according to a study.
Although levels of confidence are much higher than a year ago, Gfk NOP’s Consumer Confidence Index - which is compiled on behalf of the European Commission - fell by two points to -19 in December.
Consumers’ expectations for the next six months fell nine points and confidence in the outlook for personal finances over the next year declined by two points. However, the measurement of the climate for major purchases improved by three points.
Gfk NOP social research managing director Nick Moon said: “After a dramatic increase in the index from August to October the index has now fallen back for two months in a row, and another month of falls could see all of the gains since August disappear.
“What will be particularly worrying for Gordon Brown is that the index for the state of the economy, which had crept into positive territory, has fallen by a substantial nine points to -6.”