Consumer confidence climbs to highest level in two years
The research, conducted among a sample of 2,000 consumers between 30 July and 12 August this year, recorded GfK’s Consumer Confidence Index at -14, up three points on July and a big improvement on the -25 from four months ago in April.
While still in negative territory, it marked the highest level since August 2024.
Accordingly, people’s confidence in their personal finances in the past 12 months saw positive change, having grown two points to -6 from -8 in July. Asked about the coming 12 months, consumer confidence was +4, up from +1 in July.
However, there are clearly still jitters. The measure for the UK’s general economic situation over the past year fell by a single point to -40, but is two points higher than a year ago. Again, looking ahead reflected a sense of resilience – expectations for the year ahead rose by five points to -23, and was up seven on a year ago.
GfK’s Major Purchase Index grew five points to -7 in August and the Savings Index was up five to +22.
Neil Bellamy, consumer insights director at GfK, noted that, while optimism around economic prospects for the next 12 months was still “deep in negative territory”, it was the “best since August 2024, shortly after Keir Starmer took office”.
He added: “Does all this mean that people have greater faith in the new government to increase growth and job opportunities? Can consumers finally see an end to the cost-of-living crisis? It would be tempting to say yes, but frankly it’s too soon to tell. With inflation back on the rise – now at 2.9% and the highest in four months – and with continued uncertainty in the Middle East and elsewhere, there are still many challenges ahead that will test the mettle of UK consumers.”
The Consumer Confidence Barometer has been published since January 1974. The data has been published jointly by the Nuremberg Institute for Market Decisions, which founded GfK, since October 2023.
Last month, ResearchLive reported an improvement in consumer expectations in June and a renewed confidence in their personal financial situation.
We hope you enjoyed this article.
Research Live is published by MRS.
The Market Research Society (MRS) exists to promote and protect the research sector, showcasing how research delivers impact for businesses and government.
Members of MRS enjoy many benefits including tailoured policy guidance, discounts on training and conferences, and access to member-only content.
For example, there's an archive of winning case studies from over a decade of MRS Awards.
Find out more about the benefits of joining MRS here.
0 Comments