Consumer confidence stabilised in July

Consumer confidence for July was up 0.1 points to a total 113.2, with any score above 100 seen as above-average confidence.

The research shows thar while job security and home value measurements increased, they were offset by falling consumer confidence in business activity and household finances.

The findings are based on 6,000 interviews carried out monthly by YouGov, and focus on household finances, property prices, job security and business activity, both over the past 30 days and the next 12 months.

The research found that confidence in household finances over the past month fell 2.2 points to a score of 94.6, with a similar fall of 2.3 points for household finances over the year ahead, with a total score of 101.8.

Business activity – the measure of the success, or otherwise, of the company respondents worked for – was 2.6 points lower for the year ahead, albeit with a total score of 126.

Respondents were also less confident in business activity for the previous month, dropping 0.4 points to 111.6.

Confidence in job security over the next year rose 4.1 points in July to 118.6, correcting a fall of 4.4 points the previous month.

Employees also gelt their job had become more secure over the previous 30 days, rising 0.6 points but remaining in negative territory at 93.1.

Homeowners were also more optimistic about the value of their homes, with their confidence in the value of their properties over the past month rising 2.8 points to hit a score of 127.9.

Confidence in house prices for the year ahead was the highest metric in the research at 132.2 points.

Darren Yaxley, director of reputation research at YouGov, said: “Negative sentiment for business activity and household finances are the main reason the index has stabilised after a period of intense growth, with both outlook and retrospective measures decreasing.

“Rising inflation and consumer debt that has accumulated during the coronavirus crisis could explain why Britons are feeling increasingly worried about their personal finances.”

Sam Miley, economist at the Cebr, said: “Though July’s figures suggest that consumer confidence is stagnating, this should not be seen as cause for concern.

“The reading of 113.2 still stands as the second-highest value since May 2016, suggesting consumers are overwhelmingly positive at present. This was to be expected, given the ongoing economic recovery and return to spending and social opportunities.”