Consumer Confidence Declines Seven Points In December
News: Consumer confidence in the UK dropped seven points to -29 in December 2012, according to figures released by UK-based market research agency GfK NOP . This came after consumer confidence in November rose eight points to -22, the highest reading in 18 months. According to the latest figures, consumer confidence in December was just one point higher than October ' s score, according to Nick Moon, the managing director of social research at GfK. Consumer morale is still weak despite the Christmas season, Moon said.
BMI View : We believe that the UK economy is treading water rather than heading into a deep and protracted recession. However, combined household deleveraging and the government's ambitious fiscal squeeze have left the export sector and fixed capital investment as the only viable engines of growth. Unlike previous recessions in which a strong rebound in consumer spending restored the economy to its previous growth trajectory, the household sector is not up to the task this time around, with implications for food and grocery spending.