Confidence therefore remained depressed and the index remained well below the long-term average reading of +4. The deterioration in consumer confidence between Q1.17 and Q2.17 stemmed predominantly from the forward looking indicator measuring expectations of economic prospects in 12 months’ time.
Persistently depressed consumer confidence constrains the willingness to spend. Consumers’ ability to spend has been restricted by weak income growth, higher taxes, rising unemployment, and muted rates of credit extended to households.