The economic uncertainty that has become a hallmark of Brexit over the past two years continues to affect consumer confidence. In January, UK house prices posted their lowest annual growth rate since February 2013. Last month, prices were only 0.1% higher than they were the same month the year before, down from 0.5% annual growth in December. The average price of a house in the UK is now lower than it was in summer.
Gfk consumer confidence came in as expected, but that will not be all that encouraging, as the figure held steady at -14. It helps show the effects of continued Brexit uncertainty and how it is beginning to seriously affect consumer confidence. Reports that almost a third of British businesses are planning to relocate in the event of no deal should alarm those responsible for ensuring it does not happen.
Today we will see the manufacturing purchasing managers’ index for January. It is expected to drop to 53.5 from 54.2 the previous month.