UK Consumer Confidence Dives Amid Coronavirus Lockdown
April 05 2020 - 7:30PM
Dow Jones News
By William Horner
U.K. consumer confidence plummeted in the last two weeks of
March in the biggest drop ever recorded as the nation entered a
state of lockdown in an attempt to slow the rapid spread of the
coronavirus.
An index of consumer confidence gathered by market research firm
GfK fell by 25 points to minus 34. It was the index's lowest
reading since February 2009 and the biggest single drop in the
index's history, which stretches back as far as 1974.
Consumer sentiment nosedived as Britons feared a sharp decline
in their financial situation and the economy. A subindex gauging
consumers' expectations about their personal finances in the next
12 months fell 20 points to minus 17 and another, on their views
about the state of the economy in the year ahead, fell 29 points to
minus 56. In a worrying sign for retailers, a gauge of consumers'
likelihood to make major purchases slumped 50 points to minus
52.
This was the second reading of U.K. consumer confidence for
March produced by GfK. The first, based on surveys conducted in the
first two weeks of the month, showed a small drop in consumer
sentiment as concern over the virus grew. Sentiment fell two points
in that period to minus nine.
The latest surveys took place after the government rolled out a
nationwide lockdown that bans residents from leaving their homes
other than in essential circumstances, and ordered the closure of
all bars, pubs, restaurants and other businesses deemed
nonessential.
As of Friday morning, there were more than 33,000 confirmed
cases of the coronavirus in the U.K. as well as more than 2,900
known deaths from the virus.
GfK surveyed 2,000 adults between March 16 and March 27 and
produced the index on behalf of the European Commission.
Write to William Horner at william.horner@wsj.com
(END) Dow Jones Newswires
April 05, 2020 19:15 ET (23:15 GMT)
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