Consumer confidence falls again

The UK Consumer Confidence Barometer, based on 2,000 individuals aged 16 or above on behalf of the European Commission, found confidence in the UK’s general economic situation during the last 12 months dropped seven points to -55, which was 25 points lower than in May 2019.

Expectations for the general economic situation over the next 12 months were down one point at -54, which was also 25 points lower than the last survey.

The index measuring changes in personal finances during the last 12 months was unchanged at -4, and was seven points lower than May 2019.

The forecast for personal finances over the next 12 months was at -9 this month, which was 14 points below the last survey.

While the Major Purchase Index increased two points to -47 in May, but was still 48 points below what it was in May 2019.

The Savings Index stayed at +14, which was two points lower than at this time last year.

Joe Staton, client strategy director at GFK, said: “With unemployment claims rising by the highest rate on record and warnings of a severe recession and possible tax hikes, the damage done by the coronavirus pandemic to the UK economic landscape has been laid bare.

“Despite plans to get the country up and running, consumers feel we are not out of the woods yet. Confidence will remain fragile for some time and the possibility of another spike in Covid-19 cases as we adapt to the ‘new normal’ is an obvious danger.”