Consumer confidence level remains unchanged in August
Consumer confidence in the UK remained at a low level in August despite hopes that it would receive a boost from the Olympic Games.
Figures released by GfK from its Consumer Confidence Index showed that the level of consumer confidence was unchanged from July, at -29. The August reading was broadly in line with economists’ forecasts.
The index measuring changes in consumers’ personal financial situation over the last 12 months rose to -21, up from the -23 seen in July and three points higher than the -24 seen in August 2011.
The forecast for personal finances over the next twelve months decreased two points in August to -10, one point higher than this time last year.
Never Miss a Retail Update!The measure for the general economic situation of the country during the last twelve months increased four points to -55, two points higher than August 2011. The expectations index for the economy rose to -27 from -30 in July, four points higher than August 2011.
The major purchases measure decreased by five points to -31, the same level as this time last year.
Commenting on the data, Nick Moon, managing director of Social Research at GfK, said: “Confidence has never been so low for so long – even during the dark days of the 2008-2009 recession. Unlike last year’s Royal Wedding which boosted consumer confidence, there has been no spike to consumer sentiment following the Olympics.
“While the lack of a Games boost is disappointing, the true story may be even more disturbing for the Government – namely, that there has been an Olympic uplift but it has been cancelled out by the grim economic outlook.”
