Consumer confidence in the UK continues to be a cause for concern, as data from GfK reveals that the GfK Index remained at a low of -41 in July. This shows that the cost-of-living crisis is still a significant worry for consumers and continues to impact their financial outlook.
Joe Staton, Client Strategy Director for GfK, highlighted the negative effects of rising food and fuel prices, as well as increasing interest rates, on consumer confidence. These factors have contributed to a gloomy financial atmosphere among consumers.
Looking at the different categories of the index, two measures showed improvement, one declined, and two remained the same compared to the previous announcement in June. The index measuring changes in personal finances over the last 12 months remained stagnant at -23, which is 22 points worse than the same period last year. However, there was a slight increase of two points in the forecast for personal finances over the next 12 months, now at -26, showing a 37-point decline compared to last year.
The measure for the general economic situation of the country over the past 12 months decreased by one point to -66, which is 23 points lower than July of the previous year. Expectations for the general economic situation over the next 12 months remained unchanged at -57, reflecting a significant 52-point decrease compared to the previous year.
Interestingly, the Major Purchase Index, which indicates consumers’ willingness to make large purchases, saw a slight increase of one point to -34 in July. However, this is still 36 points lower than the same period last year. The Savings Index, which measures consumers’ propensity to save, saw a four-point increase this month, reaching +13. Despite this improvement, it is still seven points lower than last year.
Staton acknowledged a small increase in optimism regarding personal financial situations for the next 12 months, possibly due to anticipated changes in the UK government. However, he emphasized that the overall consumer confidence index remains historically low due to widespread concerns about the general economic situation.
In light of these financial challenges, the UK population is looking for new leadership that is committed to stimulating economic growth, addressing inflation, and reducing taxes. It is crucial for the successful candidate to provide a much-needed boost to the country’s economy in order to improve consumer confidence.
Useful links:
– To learn more about the GfK Index and its impact on consumer confidence, visit the GfK website: https://www.gfk.com/
– For information on the current economic situation in the UK and its effects on consumer sentiment, refer to the Office for National Statistics: https://www.ons.gov.uk/
