UK consumers ‘resilient’ with spending

The overall index score for July was boosted by four measures increasing and one remaining unchanged, but it remains in negative territory.

The UK began the year with an overall index score of -14 in January, and since then it has been at -13 with the exception of an increase to -10 in May.

In July, the index measuring changes to consumers’ personal finances during the last 12 months increased by two points to +1 – the same level recorded in July 2018. The forecast for personal financial outlook increased by five points to +7, also matching the same period last year.

Consumers’ views towards the general economic situation during the past year has stayed the same this month at -32. While expectations for how the economy will develop increased slightly to -32, this is still six points lower than last July.

The major purchase index, which is based on asking respondents whether they think now is a good time to buy large items such as furniture, rose by six points to +4 this month.

Interviews for the research took place during 1^st-14^th July, before Boris Johnson became prime minister.

Joe Staton, client strategy director at GfK, said: "Pre-Brexit consumers are marginally more bullish this month with improvements in levels of confidence across most measures. Although it’s too soon to judge any impact of a post-Boris bounce, we can report a boost in attitudes to our personal financial situation in the face of low interest rates and day-to-day inflation, a buoyant labour market and growth in real wages."

Staton added: "Consumers have generally been less affected by Brexit uncertainties than business since the referendum. However, the coming months to the 31^st October departure date will test the strength of this confidence."

The UK Consumer Confidence Barometer is conducted by GfK on behalf of the European Commission.