NEWS29 June 2018

Consumer confidence down on all measures

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UK – Consumer confidence has dropped by two points to -9 in June as optimism about the economy deteriorates, according to GfK’s Consumer Confidence Index.

Gloomy outlook_crop

All five of the measures in the index decreased in the past month as concerns about the economy continue to influence consumers.

The index measuring personal financial situation during the last 12 months dipped by one point to 0, while the outlook for the next 12 months fell by two points to +6.

Expectations for the country’s general economic situation worsened in June, with this index dropping by four points to -28 for the last 12 months, while the outlook for the next 12 months also decreased to -25. Both general economy measures are lower than they were in June 2017.

The Major Purchase Index, which measures the likelihood of consumers making large purchases, dipped by one point to 0.

Meanwhile, the Savings Index, which is not included in the overall index score, increased to +8 – four points higher than June 2017.

Joe Staton, client strategy director at GfK, said: “Consumers are yet again feeling less upbeat as is evident from the two-point drop in the Overall Index Score this month. We are reporting falls across all key measures. Scores on personal finance are down but there is a more marked deterioration in our levels of optimism about the general state of the economy, with the verdicts on the past year and the coming year each tumbling four points.

“Shoppers are holding on to their cash and consumers in general seem set on their path of self-imposed austerity. The Overall Index Score has now registered at zero or negative for 30-months. The trend since 2015 has been resolutely downwards and it’s difficult to see the direction changing in the run-up to the UK leaving the European Union in March 2019.”

The UK Consumer Confidence Barometer  is conducted by GfK on behalf of the European Commission.