21st December 2010
The latest GfK NOP Consumer Confidence index shows overall confidence remains at -21, the same level as this time last year. But the one-off hike in VAT scheduled for January 2011 has skewed results. Consumers intend to bring forward larger purchases to beat the tax rise. Their intentions mask falls in all other areas, leaving overall confidence ‘teetering on the brink'.
The index shows falls in four other important measures. Consumers feel less confident about their personal financial situation over the last 12 months and for the coming 12 months. They are also less confident about the ‘general economy' over the last year and over the forthcoming year.