Consumer confidence shows “subdued” improvement in July
Consumer confidence has seen just a small improvement in July as people wait to see the impact of the new government’s policies on their finances.
GfK’s longstanding Consumer Confidence Index has edged up one point to -13 this month, with two measures up, one down and two remaining unchanged from June.
Looking at GfK’s measure for people’s expectations for their personal finances over the next 12 months, this is down one point at +3, although the measure for their outlook for the economy over the same period remains the same as June at -11.
However, the major purchase index has risen by seven points to -16, which is 16 points higher than the same month last year.
Subdued improvement as poll suggests a note of caution
Joe Staton, client strategy director GfK, said: “There was a subdued one-point improvement in the overall index score in July
“The seven-point uptick in the major purchase index is potentially good news for retailers that could translate into improved footfall in the months to come.
“But the consumer view on the UK’s wider economy has paused with scores that are identical to last month.
“Two important events during the survey period (UK general election result on July 5th, and England sealing its place on July 10th in the UEFA Euro 2024 Final) could have boosted the national mood but appear to have had limited positive impact.
“So, July’s consumer confidence poll suggests a note of caution as people wait to see exactly how the UK’s new government will affect the wider economy and their personal finances.”
GfK has been running its UK Consumer Confidence Barometer for over 50 years.
Retail sales
The news comes as figures from the Office for National Statistics show that retail sales volumes were weaker than expected in June with a fall 1.2% compared to a rise of 2.9% in May.
