Consumer optimism stayed consistent in August, marking stability in economic sentiment.
- The GfK Consumer Confidence Index held steady at -13, mirroring July’s figure.
- A notable three-point rise in the Major Purchase Index was observed.
- Confidence in personal finances saw a modest improvement.
- However, perceptions of the UK economy declined, breaking a trend since February.
The latest figures from the GfK Consumer Confidence Index indicate a steady sentiment among consumers for August, maintaining an overall score of -13 — unchanged from July. This plateau suggests a period of stabilisation in consumer outlook amidst the current economic conditions.
While the index as a whole showed no movement, distinct shifts within its measures were evident. The Major Purchase Index experienced a three-point rise, signalling increased consumer confidence in making significant purchases. This may reflect a level of optimism regarding personal financial security or favourable market conditions.
Personal financial expectations for the year ahead also improved, evidenced by a three-point increase to +6 in this measure. GfK’s client strategy director, Joe Staton, pointed to factors such as a recent mortgage-friendly interest rate cut as potential contributors to this positive outlook. This optimism appears to bolster consumer readiness to engage in economic activities.
Conversely, sentiment toward the UK economy showed deterioration, as expectations dropped by four points to -15. This marks the first downturn in economic expectations since February, indicating growing consumer apprehension about potential economic challenges.
Despite these contrasts, the current index score is a considerable improvement compared to August of the previous year, which stood at -25, underscoring a gradual recovery in consumer confidence over the past twelve months.
Overall, consumer confidence in the UK remained unchanged in August despite underlying shifts within the index’s measures.
