Confidence hits 18-month low as Brexit jitters fuel uncertainty

Consumer confidence has plunged to its lowest level in 18 months, as uncertainty over Brexit takes its toll on shoppers’ spirits despite rising wages and record low unemployment.

Confidence among consumers fell for the second consecutive quarter in the final three months of 2018, sliding from -7 per cent to -9 per cent, according to data released today from Deloitte.

Jitters over job security and disposable income were among the chief factors denting confidence levels, which dropped to an 18-month low in the fourth quarter of last year.

Experts at Deloitte said that uncertainty hanging over Britain’s imminent departure from the EU has helped offset a period of falling inflation, rising wages and low unemployment.

“Recent data, in the form of record employment, higher earnings and falling inflation are great news for UK consumers. But consumers are more focussed on Brexit worries at home and the clouds gathering over the global economy,” said Ian Stewart, chief economist at Deloitte.

Stewart added: “Work may be easier to find than for decades and pay may be rising, but today’s decline in confidence shows that consumers spirits are heavily influenced by expectations.”

Fresh signs of disappointment during the crucial festive trading period have also been underlined, with Deloitte finding that growth in the run up to Christmas was more muted than expected.

Such evidence comes after several of Britain’s largest retailers reported a drop in year-on-year sales over the Christmas period, amid lower levels of footfall and weaker consumer spending.