–GFK/NOP: UK Dec Consumer Confidence -21 Unch vs Nov
–GFK/NOP: Most Measures See Declines; Only Major Purchases Rises
–GFK/NOP: Major Purchase Index Rise Boosted By Looming VAT Hike
LONDON (MNI) – UK consumer confidence was unchanged in December,
but other component measures of the overall GFK/NOP Consumer Confidence
Barometer declined.
GFK/NOP said that the overall headline CCB reading has been
distorted this month by the looming VAT hike due at the start of 2011
which has persuaded many consumers that now is a good time to make a
major purchase.
The Major Purchase Index was the one measure to rise, climbing to
-7 from -17 in November.
Consumers were less confident in their personal financial situation
over the past and the next 12 months as well as in the general economy
over the last and over the next 12 months.
The personal financial situation over last 12 months index fell to
-16 from -13 in November, while for the next 12 months this fell to -8
from -7. The general economic situation over the last 12 months fell to
-51 from -46 and over the next 12 months it fell to -23 from -22 – the
last is now 17 points lower than in December 2009.
Nick Moon, MD of GfK NOP Social Research, said:
“At the moment consumer confidence is being propped up by one thing
– a belief that the run-up to Christmas and the VAT hike is a good time
for big-ticket retail purchases. This element of the index has distorted
the overall index to make it appear static when in fact it is teetering
on the brink. Every other measure has fallen and without this one
positive, consumer confidence would have fallen to its lowest level in
over a year. Of course, the real test will come in January when festive
spending ceases and the VAT increase comes in. Then we will finally see
the full impact of how consumers are reacting to the first wave of
austerity measures.”
Interviewing for the survey was carried out between December 3 and
12 2010.
–London newsroom 44207 862 7491; email: ukeditorial@marketnews.com
[TOPICS: MT$$$$,M$B$$$,MABDS$]
