Consumer confidence in the UK has shown an increase for the third consecutive month, although it remains negative overall.
- The GFK Consumer Confidence Index rose by three points in June to -14, primarily due to boosted optimism regarding the UK economy.
- Despite improvements, the ongoing cost of living crisis continues to weigh on overall consumer sentiment.
- The index revealed mixed results among its five measures: three rose, one fell, and one remained unchanged.
- GFK’s director highlighted a slow yet steady upward trend, attributing it to consumer desires for financial stability.
The recent figures from the GFK Consumer Confidence Index indicate a cautious yet noticeable rise in consumer optimism, marking the third consecutive month of increases. Consumer confidence rose by three points in June to -14, reflecting a budding positive outlook towards the UK economy. Despite this rise, the overall index remains in negative territory, influenced heavily by the persistent cost of living crisis.
Detailed assessments of the index’s components show varied results. The index measuring personal financial situations over the past year remained unchanged at -10, albeit five points higher than the previous year. In contrast, the forecast for personal finances over the next twelve months saw a slight decline, dropping three points to +4, which still stands five points above June 2023’s figures.
Assessments of the broader economic situation in the country provided a glimmer of hope, with the index rising seven points to -32. This substantial 22-point increase from the same period last year suggests a shift in perceptions about economic recovery. Looking ahead, expectations for the economic landscape are projected to rise by six points to -11, compared to June 2023.
The major purchase index also noted an upswing, climbing three points to -23, two points higher than the same month last year. However, not all indicators were positive, as the savings index experienced a downturn, dropping five points to +22, falling three points short of last year’s standing.
Joe Staton, GFK’s client strategy director, conveyed cautious optimism, remarking on the overall improvement bolstered by a more favorable outlook on the economy both in retrospect and for the year ahead. However, the difficulties imposed by the unrelenting cost of living crisis continue to challenge households, preventing a shift into positive confidence territory. Despite ongoing hardships, a robust long-term upward trend in consumer confidence is evident, recovering significantly from the record low in September 2022.
Overall, consumer confidence shows resilience, but challenges remain due to economic pressures.
