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UK consumer confidence falls in January

Staff Writer |
UK consumer confidence fell back in January, data from the European Commission has shown, while eurozone confidence was better than expected.

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The seasonally adjusted consumer confidence indicator edged down to -5.1 in January, from -4.6 in December, as they worry about a burst of high inflation.

UK consumer confidence is modestly lower than that of the eurozone, which surprised economists by improving to -4.7, when it was forecast to remain at -4.9.

Consumers have become more downbeat primarily because they anticipate inflation shooting up, the data showed, with the balance of households expecting prices to rise over the next year increasing in January to its highest since the start of 2011.

UK economic sentiment index fell to 107.1 in January from 108.5 in December, the EC said, slightly below the Eurozone average of 108.2.

Confidence in the manufacturing sector rose to its highest level in almost two years, but was gloomy about retail and construction, while confidence in the services sector sank sharply to the lowest level since May 2013.

Understandably amid the confusing economic and geopolitical news and conflicting messages about Brexit, confidence is still above the three-month low of -6.9 in November, which came after a -1.7 reading in September and the post-referendum -9.2 in July.

Over the channel, the eurozone ESI increased by a modest 0.4 points to 108.2 and remained broadly stable in the wider EU, down 0.2 points to 108.7.

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