NEWS24 June 2022

Consumer confidence hits another record low

News Trends UK

UK – Consumer confidence in the UK has sunk to a new record low as the country grapples with a cost-of-living crisis fuelled by surging inflation, according to GfK’s Consumer Confidence Index.

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The index found that overall consumer confidence for June was -41, a point lower than May’s total and the worst score since the index began in 1974.

All of the other measures of consumer confidence either fell or stayed the same in June, with confidence in the general economic situation over the past 12 months falling two points to -65.

Confidence in the economy for the year ahead was at -57, one point lower than in May.

The findings are based on a survey of a nationally representative sample of 2,002 individuals aged 16 or older carried out between 1st June and 14th June 2022.

Respondents’ views of their own personal financial situation over the past year was ranked at -23, a point fewer than the previous month.

Confidence in personal finances for the year ahead was at -28, which was a three-point drop from May.

The major purchase index, which measures whether now is a good time to make a major purchase such as a house or car, stayed stable at -35.

The savings index, which measures whether the current time is ideal for saving money, fell a single point but stayed in positive territory with a score of nine.

Joe Staton, client strategy director at GfK said: “With prices rising faster than wages, and the prospect of strikes and spiralling inflation causing a summer of discontent, many will be surprised that the index has not dropped further.

“The consumer mood is currently darker than in the early stages of the Covid-19 pandemic, the result of the 2016 Brexit referendum, and even the shock of the 2008 global financial crisis, and now there’s talk of a looming recession.

“One thing is for sure, Britain faces a stark new economic reality and history shows that consumers will not hesitate to retrench and tighten their purse strings when the going gets tough.”

@RESEARCH LIVE

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