U.K. Consumer Confidence Lowest Heading Into Election Since 2010

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U.K. consumer confidence remained subdued in November, putting it at the lowest level going into a general election since 2010.

GfK said Friday that its key index of sentiment stayed at minus 14 in November. While expectations for the economy over the next 12 months increased, measures of expected major purchases and savings fell. The headline index has now been below zero for almost four years as continued Brexit uncertainty weighs on consumers.

Before the 2010 election, which took place in the aftermath of the financial crisis and saw a Conservative Party bent on austerity take power from Labour, the index was at minus 16. Still, there are few signs that dissatisfied consumers will turn on the government this time round, with a much-anticipated poll this week putting the Tory Party on track to win its biggest majority in more than three decades.

“In the face of Brexit and election uncertainty, consumers are clearly in a ‘wait-and-see’ mode,” said Joe Staton, client strategy director at GfK. “The general election is potentially an opportunity to move us out of the doldrums, but for this to happen there must be a clear result. Uncertainty is nobody’s friend.”

A separate report from Lloyds Friday showed confidence among businesses picked up this month. An index of overall sentiment rose to 9%, while optimism regarding the economy increased to its highest levels since January.

To contact the reporter on this story: David Goodman in London at dgoodman28@bloomberg.net

To contact the editors responsible for this story: Paul Gordon at pgordon6@bloomberg.net, Lucy Meakin, Andrew Atkinson

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