UK consumer morale dips as personal budgets squeezed – GfK

LONDON: British consumer confidence dropped unexpectedly in April, mainly as a result of worsening personal finances, a survey from researchers GfK NOP showed on Tuesday.

The headline index in the poll fell to -27 from -26 in March, slightly weaker than analysts’ forecasts for another unchanged reading.

Although morale remains stronger than a year ago, the index is considerably below its average of -9 since the survey started in 1974.

“After three months of stability, the next move of the index was always going to be important,” said Nick Moon, Managing Director of Social Research at GfK. “The fall back, even though by only one point, implies the recovery in confidence has stalled, and real recovery looks a long way away.”

The poll of 2,001 Britons was carried out on behalf of the European Commission between April 5 and April 14, before official data showed that Britain’s economy avoided another recession, posting growth in the first three months of the year.