UK confidence unchanged in July

The index measuring personal finances during the next 12 months has increased by three points to zero this month, while the same measure for the last 12 months is up one point to -4.

Respondents’ expectations for the country’s general economic situation over the next year improved slightly, with a one-point increase to -41 – still firmly in negative territory and nine points lower than July last year.

The Major Purchase Index, which tracks whether people think now is a good time to spend money on larger purchases, has decreased one point to -26; 30 points lower than it was in July 2019.

The Savings Index, which is commented on but not included in the overall index score, improved by eight points this month.  

The last interim ‘Covid-19 flash report’ on 3^rd July, released by GfK to supplement its usual monthly barometer, showed an overall index score of -27, an improvement on the -36 recorded in May.

Joe Staton, client strategy director, GfK, said: “Amid significant job losses and the end of the furlough scheme, it is perhaps surprising consumer confidence has held steady at -27 this month. Many people have been savvy and saved money during lockdown, as the most recent GDP figures show. That could explain the one bright spark on the horizon – the three-point uptick in consumer expectations for the financial position of their households in the next 12 months.

“The way we perceive our ’future wallets’ is key as it’s the one area over which we have day-to-day control and is a good indicator of our personal financial outlook for the year to come.”

The Consumer Confidence Barometer is conducted by GfK on behalf of the European Union. Interviewing was carried out during 1st – 13th July 2020.