The latest GFK Consumer Confidence Index indicates a slight improvement in consumer sentiment for June, albeit still in negative figures.
- A three-point increase in the overall index was noted, reaching -14, primarily driven by optimism regarding the UK economy.
- Despite the general economic index rising by seven points, the unrelenting cost of living crisis continues to exert a negative influence.
- Personal financial expectations for the future declined by three points, while past financial assessments remained unchanged.
- Notably, the savings index witnessed a decrease of five points, reflecting a change in consumer saving behaviour.
According to the latest report by GFK, the Consumer Confidence Index experienced a rise of three points in June, reaching -14. This marks the third consecutive month of improvement since March. GFK attributed this increase to heightened optimism about the UK economy over the past year and the forthcoming 12 months.
Despite these positive movements, the overall index remains negative. The unrelenting cost of living crisis continues to cast a shadow over the consumer sentiment, as pointed out by GFK’s client strategy director.
Among the five measures within the index, three showed improvement, one declined, and one remained the same. The index measuring personal financial situations over the past year was unchanged at -10. However, this is five points higher than the corresponding month last year, indicating some level of recovery.
Forecasts concerning personal finances for the forthcoming year dropped by three points to +4, though this remains an increase of five points compared to the same period last year. The index reflecting the UK’s general economic situation increased by seven points, reaching -32, which is 22 points higher than last year.
Looking ahead, there is a positive prediction with the economic situation index expected to rise by six points to -11 in the next year. Similarly, the major purchase index rose by three points to -23, showing an improvement compared to the previous year.
Conversely, the savings index declined by five points, reaching +22, which is three points lower than the previous year’s figure. This indicates a shift in consumer saving behaviour which could reflect underlying economic anxieties.
Joe Staton from GFK commented on the results, noting the persistent increase in confidence despite the challenging economic circumstances. He highlighted the importance of financial certainty as a foundation to potentially elevate consumer confidence into positive territory.
Consumer confidence shows signs of recovery but faces significant challenges from ongoing economic pressures.
