The UK GfK Consumer Confidence Index for January will be released today. British consumer confidence rose to its highest levels
The UK GfK Consumer Confidence Index for January will be released today.
British consumer confidence rose to its highest levels in the first half of December since February 2020, from -33 to -26, as the country rolled out its first COVID-19 vaccinations and traded lockdowns for more relaxed measures. However, this data was released before a new variant of COVID-19 was identified and subsequent tighter measures deployed.
British companies and consumers are also currently experiencing the effects of leaving the EU’s single market and customs zone. Experts expect the country’s economy will be one the last to recover from the pandemic.
Without a predetermined end date to the current lockdown, expect British consumer confidence to fall from December’s gains. Recovery still largely depends on a smooth rollout of vaccines and reduced restrictions and will be driven by consumer spending. With high inflation and the economy shrinking again, the Bank of England will likely reimplement some of the economic policies and fiscal stimulus of previous months, such as low interest rates and extending its lending facilities. In the medium-term, controlling the pandemic and building a resilient economy is critical for Prime Minister Boris Johnson’s post-Brexit plan, which will define his political future.
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