Homeowners more pessimistic but consumer confidence rises

UK – Consumer perceptions of business performance rose in June but fell for the housing market in an otherwise positive month for the YouGov and Centre for Economics and Business Research (Cebr) Consumer Confidence Index.

House keys

The overall index increased by 0.4 points to 105.3, with any score over 100 representing positive consumer confidence.  

Business confidence figures led the way, with workers having noticed more activity over the past 30 days, with scores rising 3.6 points to 108.3, while the measure for the next 12 months saw an uptick of 1.2 points, rising to 116.7.

Household finances also saw an increase, albeit still in negative territory, rising 1.5 points to a score of 84 for the previous month and up 2.4 points for the year ahead to a score of 84.1.

Employees were positive about job security over June, which improved 1.3 points to 92.1, but for the next 12 months, employees were more worried, with scores falling from 118.7 to 115.3.

Homeowners were the only group whose perceptions were more negative on both measures, dropping 3.2 points over the past 30 days to 110.8 and declining 0.5 points to 130 for the year ahead.

Sam Miley, head of forecasting and thought leadership at Cebr, said: “Junes index reading marks a second consecutive increase, suggesting enhanced resilience in consumer attitudes. Nevertheless, confidence does remain fragile in certain areas.

“Notably, there is still pessimism about future job prospects, with the forward-looking job security indicator sharply deteriorating. Among other factors, this likely reflects uncertainty driven by the conflict in Iran, continually tight monetary policy and the general loosening UK labour market.” 

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