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UK consumer confidence declines to 4-year low

Staff Writer |
UK consumer confidence fell to a four-year low in December as Brexit uncertainty, higher inflation and interest rate hike by the Bank of England weighed on the assessment of personal finance, survey data from GfK showed.

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The survey suggested that the confidence level is set to drop further next year.

The consumer confidence index dropped one point to -13, the lowest since December 2013. The score was forecast to remain at -12.

Among components, the index for past personal finances dropped 2 points to -3 and that for future personal finances held steady at +2.

The measure of general economic situation for the last 12 months rose 1 point to -31. At the same time, expectations for the general economic situation remained unchanged at -28.

The major purchase index dropped one point to -4 in December.

"We need to see several issues move on before the downward trend of the consumer mood changes," Joe Staton, Head of Market Dynamics at GfK, said.

"We need to have a better sense of how Brexit will pan out, and also of how quickly and how far interest rates will rise. But none of this will be resolved quickly so there's every likelihood that 2018 will take us lower," Staton added.

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