UK consumer confidence dips in July despite heatwave

The outlook for personal finances in the next 12 months decreased one point to +5 in the last month, while the index measuring changes in the previous 12 months increased one point to +1.

The index measuring people’s view on the country’s general economic situation during the past year, meanwhile, stayed the same in July, while the outlook for the next 12 months dipped one point to -26.

The major purchase index, which assesses consumers’ likelihood to make large purchases such as furniture or electrical goods, decreased two points to -2.

Meanwhile, the savings index, which is not included in the overall score, increased to +9 in July – four points higher than July 2017.  

GfK’s overall index score has been either at zero or in negative territory for over two years. Joe Staton, client strategy director at GfK, said: “Despite the World Cup, Wimbledon and warm weather playing front and centre in the nation’s psyche this July, the Barometer again reveals a decline in consumer confidence.

“In this environment, any bad news such as a surprising uptick in inflation with the expectation of a corresponding increase in interest rates, or any adverse political event either at home or abroad, would likely have an exaggerated downward drag on consumer confidence.”

The UK Consumer Confidence Barometer is carried out by GfK on behalf of the EU.