Consumer confidence falls to lowest level for 12 years

The UK Consumer Confidence Barometer, which is carried out by GfK in partnership with the European Commission, found that the total score of -36 is only three points above the lowest level seen in the history of the barometer, which occurred in July 2008.

The survey for the latest GfK Covid-19 report took place between 20th May and 26th May, with 2,000 people interviewed.

People surveyed rated their personal financial situation over the last 12 months at -10, which was six points fewer than the previous barometer.

There was also a one point fall in people’s confidence in their financial situation over the next year, with a total score of -10.

The survey showed that perceptions the health of the economy over the previous year were down five points to -60. People also rated the country’s economic prospects over the next 12 months at -57, compared with -54 at the previous survey.

The major purchase index, which measures whether people feel now is the right time to buy an expensive product, did increase by six points but was still at a score of -41.

Joe Staton, client strategy director at GfK, said: “Against a backdrop of falling house prices, soaring jobless claims, and with no sign of a rapid V-shaped bounce-back on the cards, consumers remain pessimistic about the state of their finances and the wider economic picture for the year to come.

“As the lockdown eases, it will be interesting to see just how the consumer appetite for spending returns in a world of socially-distanced shopping and the seismic shift to online retailing – alongside worries of a fresh spike in Covid-19 cases as relaxations increase.”