Olympics fail to boost consumer confidence

The Olympics: did not boost consumer confidence says market research firm GfK
The Olympics: did not boost consumer confidence says market research firm GfK

Consumer confidence received no boost from the London 2012 Olympics, in a blow to hopes that the £9.3bn spent on the 2012 Games by the public sector would kick-start the economy.

The overall score for the GfK consumer confidence index stayed the same this month at -29, as consumers continued to remain pessimistic about their personal finances.

According to GfK, consumer confidence has never been so low for so long, even taking into account the 2008-2009 recession,.

The data comes after a summer of rain that Met Office statistics show is the wettest in 100 years.

Nick Moon, managing director of social research at GfK, said: "There has been no spike to consumer sentiment following the Olympics.

"While the lack of a Games boost is disappointing, the true story may be even more disturbing for the Government – namely, that there has been an Olympic uplift, but it has been cancelled out by the grim economic outlook."

Moon added that the UK's "spiral of depression" in consumer confidence does not look like improving in the near future.

The index measuring changes in personal finances during the past 12 months has increased two points this month to -21, but people's forecast for their personal finances has decreased two points to -10.

Consumers' expectations for the general economic situation over the next 12 months have increased three points to -27, up four points year on year.

The measure of how likely consumers are to make a major purchase has decreased by five points this month to -31, which is the same level as this time last year.

Some 2,000 people were surveyed on behalf of the European Commission and the interviews began on 3 August and ended on 12 August, the date of the Olympics closing ceremony. 

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