Omicron dents major purchase confidence
December 17, 2021
Omicron has impacted consumer confidence for big ticket items like flooring but Q4 furniture sales are strong.
The GfK Major Purchase Index which covers furnishing, flooring and household appliances, dipped 3 points to minus 6 for December.
However, the latest ONS data for furniture, flooring and lighting sales in November were up 8% compared to lock-down hit November 2020, and also up 3% on 2019 figures.
But the emergence of Omicron is changing ther economic landscape this month. "The lack of Yuletide cheer is evident," says Joe Staton, Client Strategy Director, GfK. "Omicron jumped out of nowhere and threatened to bring Santa’s sleigh crashing to a halt! Dispirited Brits say they are less inclined to make major purchases during the countdown to Christmas."
Overall consumer confidence went down 1 point. "We end 2021 on a slightly depressed note and it looks like it will be a bleak midwinter for UK consumer confidence possibly with new COVID curbs and little likelihood of any real uplift in the first months of 2022,” said Joe.
However, the minus 6 score in the Major Purchase Index compares to a figure of minus 22 this time last year and flooring continues to outperform with strong order books that trade comentators reckon will last beyond Q1 for many retailers.
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