- Steve Smith, UK managing director at Nielsen
Britons' consumer morale declined for a second consecutive month in October, as the British people show less confidence in the economic outlook. GfK's consumer confidence index dropped to –2 from –1 in September. Although, the index was the weakest in three months, the reading was close to the highest level in nine years of +1 reached in August and June. Confidence about the UK's economic prospects over the coming 12 months was the lowest level since February. Data by the European Commission, which measures overall economic sentiment in Britain, including businesses as well as consumers, showed a similar pattern. The commission's Economic Sentiment Indicator dropped in October for the fifth straight month. However, a separate consumer confidence survey from research group Nielsen showed consumer confidence hit its highest level since the third quarter of 2007, around the start of the financial crisis.
The UK's economy had enjoyed a recent rapid expansion after years of little or no growth, and is set to be the fastest-growing economy among the G7 countries this year, according to the IMF. However, the rate of growth cooled in the third quarter and analysts expect the economy will continue to slow during the rest of the year. A key hurdle for Britain is the weak economic performance of the neighboring Euro zone, UK's top trading partner, which has left the British economy more dependent on its own consumers.
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