The UK’s Consumer Confidence Index saw a modest increase in July, rising by one point but remaining in negative territory at -13.
- The GfK survey revealed mixed results, with two measures improving, one declining, and two remaining unchanged.
- The index’s improvement follows a three-point rise in June, suggesting cautious optimism among consumers.
- Positive trends were noted in personal financial situations over the past year and major purchase intentions.
- External events, such as the UK general election and Euro 2024 Final, showed limited impact on consumer sentiment.
The UK’s Consumer Confidence Index experienced a slight uplift in July, gaining a mere one point, yet still languishing in negative territory with a score of -13. This marginal increase reflects a tentative change in consumer sentiment amidst ongoing economic uncertainties. Research conducted by GfK highlights a complex picture, with two specific measures showing improvement, one declining, and two remaining unchanged from the previous month.
In the context of these findings, it’s noteworthy that the index has shown a mild upward trend, having increased by three points in June. This indicates a cautious yet perceptible shift in consumer outlook. Among the various measures evaluated, there was a particular emphasis on consumers’ forward expectations regarding the general economic situation and their household financial positions, alongside their willingness to make major purchases.
Joe Staton, GfK’s client strategy director, remarked on the nuanced results of the survey, stating: “There was a subdued one-point improvement in the Overall Index Score in July with only two of the five measures increasing. 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.”
The measures that demonstrated growth included an improvement in the personal financial situation over the last 12 months, which rose by two points, and a significant seven-point increase in the major purchase index. This suggests a more positive outlook towards larger, discretionary spending, which could prove beneficial for retailers.
However, while the view on personal finances appeared encouraging, the broader sentiment regarding the UK economy remained static, with scores unchanged from June. During the survey period, significant events such as the UK general election and England reaching the UEFA Euro 2024 Final might have been expected to bolster national confidence, yet their effect on consumer sentiment appeared limited.
Staton highlighted a cautious sentiment among consumers, noting: July’s 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,” he added, reflecting a broader ‘wait and see’ approach as individuals consider the potential impacts of political developments.
The modest increase in consumer confidence reflects a cautious optimism tempered by economic and political uncertainties.
