Consumer confidence edges down from its soaring highs

Chris Papadopoullos
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CONFIDENCE among UK consumers has dipped in December, according to two new sets of survey data.

The GFK consumer confidence index published today dropped to minus four in December from minus two in November, according to figures released by the eponymous market research firm.

However, it was minus 13 a year ago and near minus 40 at the trough of the recession. It remains in line with pre-recession levels.

Another index compiled by the Centre for Economics and Business Research (CEBR) and YouGov today also shows consumer confidence slipping slightly in December.

Their index declined by 1.2 points to 110.1 – the second lowest figure of 2014. A value of 96.6 represents the average of the index since it began in 2007.

Despite the dip, confidence levels are comparable to those in 2007 and still far from recessionary levels of between 70 and 95.

“The recent slip in consumer confidence has for the most part been driven by a slump in job security,” said Charles Davis, director at the CEBR. “While the headline unemployment rate has dropped rapidly over the last year or so, plenty of people are unsure about where their next pay cheque is coming from.”