Household confidence rocked by 'ripple of fear' spread by Middle East crisis
Household confidence has plunged as ‘a ripple of fear’ spreads about the effects of the Middle East conflict.
GfK’s long-running consumer confidence index dropped two points to minus 21 this month amid expectations of further sharp price rises.
Expectations for the general economy over the next 12 months have slumped six points to minus 37 – eight points worse than this time last year.
The forecast for personal finances over the next year also fell, but by one point to one – the same score as last March.
However, the major purchase index – an indicator of confidence in buying big-ticket items – fell four points to minus 18, one point lower than last year.
In an indication that consumers are adopting a ‘wait-and-see’ approach to the knock-on effects of the conflict, the savings index increased six points to 27.
Iran fears: Expectations for the general economy over the next 12 months have slumped six points to minus 37 - eight points worse than this time last year
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Neil Bellamy, consumer insights director at GfK, said: ‘People simply do not feel the economy is robust enough to ride out the knock-on effects from the Middle East conflict.
‘The decline in purchasing intentions indicates people are holding on to their money.’
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