UK consumer confidence remains “severely depressed” in July says GfK
Can UK consumer confidence get any worse? Not at the moment, it seems, as the long-running GfK Index took a breather this month, remaining flat with at a reading of -41.
But for “flat” read still “severely depressed” as the cost-of-living crisis is still a red-hot issue for consumers, the data and intelligence provider to the consumer goods industry noted.
Joe Staton, Client Strategy Director for GfK said: “Consumer confidence remains severely depressed this month as the impact of soaring food and fuel prices and rising interest rates continues to darken the financial mood of the nation.”
Of the wider five-point index, two measures were up, one was down and two were the same in comparison to the 24 June announcement.
The index measuring changes in personal finances over the last 12 months stayed the same at -23, still 22 points worse than July 2021. And the forecast for personal finances over the next 12 months is up two points at -26, some 37 points lower than this time last year.
The measure for the general economic situation of the country during the last 12 months is down one point at -66, some 23 points lower than last July. Meanwhile, expectations for the general economic situation over the coming 12 months have stayed the same at -57; this is 52 points lower than 12 months ago.
The important Major Purchase Index increased by one point in July to -34, still 36 points lower than this month last year.
And the Savings Index is up four points this month at +13; this is seven points lower than this time last year.
Staton added: “Despite a two-point uptick in our hopes for our personal financial situation for the next 12 months, which might reflect optimism over imminent change at the top of the UK government, the overall index languishes at a historic low amid acute concerns for the general economic situation.
“Against this financial backdrop, the UK electorate is looking for a new leadership with a commitment to unleashing growth, tackling inflation and cutting taxation. The successful candidate will need to deliver a much-needed shot in the economic arm of the country if they are to help improve consumer confidence.”
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