Consumer confidence is higher in London than anywhere else in the UK despite falling in December, a report has found.
The capital’s reading for consumer confidence dropped by three points from minus 26 last month to hit minus 29, the lowest it has been since August, according to GfK NOP’s research.
London’s reading is the highest in the country and four points above the national average, which fell two points in December from November’s figures. Consumer confidence in the capital is nine points lower than in the same month last year, the report found, while the national average has dipped by 12 points over the last 12 months to reach its lowest level in three years.
The consumer confidence reading takes into account people’s perception of their own personal finances, along with the general economic situation and the climate for making major purchases.
GfK NOP managing director Nick Moon said: “The two point drop in the index this month means consumer confidence is now at its lowest ebb in almost three years. In fact, in the 37 years the index has been running it has only been lower on two occasions – a single month in 1990, and eight months during the 2008-2009 recession.
“Optimism has not been lifted by pre-Christmas spending and it is hard to see grounds for a recovery in confidence in the near future. The eight per cent drop in the score for the general economic situation over the next 12 months is significant and will make chilling reading for the government and British businesses.”
Londoners are more positive about their household’s financial situation over the last 12 months than people in any other region of the country. The capital’s reading of minus 20 is three points higher than the national average, while the East Midlands has the lowest reading at minus 29.
Looking at their personal finance situation over the next 12 months, people in the capital deliver a reading of minus seven, also three points above the national average. The North East had the highest rating (minus six), while Wales had the lowest (minus 21).