Consumer confidence in the UK has stabilised this August, maintaining a score of -13, mirroring July figures.
- The long-standing GfK Consumer Confidence Index revealed a lack of change in the overall score.
- Mixed results emerged with three measures improving and two declining compared to the previous month.
- The Major Purchase Index experienced a notable three-point increase, highlighting consumer spending intentions.
- Confidence in personal finances showed a slight increase, though economic outlook dropped for the first time since February.
The GfK UK Consumer Confidence Barometer for August maintained its position at -13, showing no change from July’s results. This stability indicates a consistent consumer sentiment amidst varying economic factors.
Observed shifts within the index included a three-point rise in the Major Purchase Index, suggesting heightened consumer readiness to make significant purchases. This increase could signal an optimistic view towards spending, likely influenced by recent favourable interest rate adjustments.
Contrastingly, consumer confidence in the economic outlook recorded a decline. This measure fell by four points to -15, marking a downturn not seen since February. The public’s perception of economic conditions over the past year also decreased by three points, reflecting ongoing uncertainties in the broader economic landscape.
Despite these declines, there was a positive turn in personal financial expectations for the upcoming year, which saw a three-point rise from +6. Joe Staton, the client strategy director at GfK, attributed this more positive personal outlook to recent interest rate cuts, which may provide financial relief and increased spending power.
In comparison to the same period last year, the overall index showed improvement, climbing from -25 to its current -13. This suggests a recovery in consumer sentiment over the year despite current negative figures.
In essence, whilst consumer confidence remains steady overall, underlying contrasts reveal shifts in financial optimism and economic concern.
