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UK consumer confidence dips, hit by China, migrant crisis - GfK

Published 30/09/2015, 00:11
© Reuters. A shopping trolley is pushed around a supermarket in London

LONDON (Reuters) - British consumer morale fell more than expected in September as people worried about China's economic slowdown and Europe's migration crisis, a survey showed on Wednesday.

Market research firm GfK's monthly consumer confidence index slipped to +3 from +7 in August, which had matched June's figure as the highest since January 2000.

Economists polled by Reuters had expected a reading of +6.

"Both the Chinese economic downturn and its negative impact on global markets and the ongoing migrant crisis, combined with other economic woes across the euro zone, has hit home," Joe Staton, head of market dynamics at GfK said.

Perceptions of Britain's economy over the last year and for the year ahead both entered negative territory, which Staton blamed on a "depressed back-to-school mood" among consumers despite low inflation and rising wages.

The dip in consumer confidence comes after signs that overall economic growth in Britain lost some of its pace in the third quarter.

© Reuters. A shopping trolley is pushed around a supermarket in London

But a survey by the Confederation of British Industry published on Tuesday showed that British retail sales had beaten expectations this month by a comfortable margin.

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