Britain’s strengthening economic recovery has reached the limit of how much it can lift the mood of consumers, according to GfK NOP Ltd.
The research group’s household-sentiment index fell to minus 1 this month from 1 in August. A measure of consumers’ outlook for their personal finances dropped to the lowest this year, GfK said.
The economy probably grew for a seventh consecutive quarter in the three months through September, and data today may show the Britain had a shallower recession and recovered more strongly than initially estimated. While the broader outlook is improving, sluggish wage growth means a squeeze on households is persisting even as the recovery gathers pace.
Confidence may be in a “new period of stasis,” said Nick Moon, managing director of social research at GfK. One explanation “is that many people are not themselves feeling any better off despite the growth in GDP.”
On the outlook for the personal finances, GfK’s index fell to 1 this month from 5 in August, the lowest since December. The outlook for the economy also dropped, by 7 points to 4.