Consumer confidence improves despite stubborn inflation
UK consumer confidence has edged up this month as people feel more optimistic about their personal finances.
GfK’s June Consumer Confidence Index has risen by three points to -24 despite the impact of ongoing inflation.
Joe Staton, client strategy director, GfK, said: “Despite the fierce economic headwinds of the cost-of-living crisis, double-digit grocery price increases, and the mortgage squeeze severely impacting both homeowners and renters alike, the UK Consumer Confidence Index has improved by another three points in June, the fifth monthly improvement in a row.”
GfK’s index for measuring the forecast for personal finances over the next 12 months has increased by seven points to -1 this month, which is 27 points higher than the same time last year.
Meanwhile the measure for expectations for the general economic situation over the same period has risen by five points to -25.
Staton said: “The most telling finding is how we see our personal financial situation in the coming year – the money going in and out of our bank accounts – which shows a healthy seven-point increase. This is a whisker away from pushing into positive territory, something we have not seen since December 2021, and it’s also the third consecutive monthly increase – all of which is good news for the future.”
However, the major purchase index has fallen by one point to -25 this month, but this is still 10 points higher than June last year.
Staton added: “Consumers are showing remarkable resilience in the face of inflation that is currently refusing to yield. This is the best showing for the overall index score for the past 17 months and, if consumers continue to weather the current economic storm, then this will provide a firm foundation for getting back to growth.”
