UK will enter recession, suggests consumer confidence index

Retail figures: confidence in the economy dips
Retail figures: confidence in the economy dips

The country will enter another a recession as a result of plunging consumer confidence, the GfK NOP Consumer Confidence Index suggests.

Consumer confidence breached -32 for only the third time in the index's 37-year history and on the two previous occasions this happened the country went on to enter recessions in 2008 and the early 1990s. 

News comes as high street retailers including Argos and Mothercare record plunging sales as the result of fragile consumer confidence.

Jobs are quickly disappearing on the high street with figures from the British Retail Consortium indicating that this September there were 23,000 fewer people working in shops compared to the same period last year. 

Nick Moon, managing director of GfK NOP Social Research, suggests falling consumer confidence might mean the Government will have to rethink its economic policy.

Moon said: "The climate for major purchases has worsened, suggesting the government can't rely on people spending their way out of the double-dip recession that is likely to be on the horizon."

Consumer confidence in the country's economic situation has dipped significantly in comparison to last month, but people believe their own financial situation has not changed from September to October.

In a blow to ailing retailers, the index also indicates the public increasingly believe now is a good time to save their money as the traditionally busy Christmas shopping fast approaches.

The consumer confidence survey is conducted from a sample of 2,000 individuals aged 16 and over on behalf of the European Commission.

Follow Matthew Chapman at @mattchapmanUK

Discussion

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Brand Republic Jobs

subscribe now

Latest

Lynx unleashes £9m 'Peace invasion' campaign
Social Brands 100 Youth: Pizza Hut most social youth brand in UK
Cheryl Cole is wild and arresting in new L'Oreal work
Morrisons told not to show alcohol ads during YouTube nursery rhymes
O2 head of brand Shadi Halliwell departs after 23 years at company in restructure
Tesco hit by further sales decline as it turns to digital Clubcard and social network
Branding guru Wally Olins dies aged 83
Duracell short film captures epic Transatlantic voyage
Ash runs Tinder experiment to show smokers are less desirable to opposite sex
British Airways teams up with Gerry Cottle Jnr for summer of rooftop film screenings
Arklu says 'girls can be superheroes too' with doll design competition
Coke enters squash market with Oasis Mighty Drops
Virgin Galactic signs up Land Rover as space flight sponsor
Motorola marketer Andrew Morley departs as Google gears up for sale to Lenovo
US Airways apologises after tweeting obscene image at a customer
Mumsnet admits users' emails and passwords accessed via Heartbleed bug
Thetrainline.com backs 'rubbish' mobile app with TV ad
Powerade launches global World Cup campaign
Burberry's flagship Shanghai store facade responds to weather changes
Subway considers taking fast food to fast lane with F1 sponsorship
Ikea splurges 'grey' Belgium with colour
Grim outlook for Tesco boss Philip Clarke ahead of expected profits fall
Thomson to create first crowd-sourced wedding decided by Facebook fans
Currency wars meets origami in Alpari FX trading ad campaign
Amazon rumoured to launch 3D smartphone in September
Facebook to allow European users to store and transfer money on site, claims report
Unilever pilots multi-brand advertising with YouTube beauty channel
Lego, Coca-Cola, Net-a-Porter, Bitcoin and AOL: the digitally creative brands
Dove tries to tell women their beauty is innate through placebo patches
Wonga faces social media storm after forcing Twitter to remove satirical material