Third monthly increase in consumer confidence

UK consumer confidence increased in June as three measures rose during the month, including major purchases.

According to the latest GfK Consumer Confidence Index, overall figures increased three points to -14 in June. Three measures were up, one was down and one was unchanged in comparison to last month’s announcement.

The Major Purchase Index, which includes big ticket items such as furniture, is up three points to -23; this is two points higher than this month last year.

The measure for the general economic situation of the country during the last 12 months is up seven points at -32; this is 22 points higher than in June 2023.  

The index measuring changes in personal finances during the last year is unchanged at -10; this is five points better than June 2023.

The Savings Index has decreased five points to +22 in June; this is three points lower than this time last year.

Joe Staton, Client Strategy Director, GfK, says: “Once again we have an improved reading for the Overall Index Score with June showing a three-point improvement bolstered by consumers’ more sympathetic view of the economy for the last year and the 12 months to come. Those measures on the economy registered sharp increases of seven points and six points respectively, and there was a welcome three-point boost in intentions to make major purchases.

“While June’s reading of -14 is the third month in a row that confidence has increased, the headline score remains negative owing to the difficulties so many have experienced as the unrelenting cost-of-living crisis batters household budgets. Nevertheless, consumer confidence continues its robust long-term upward trend this month, and has recovered significantly since the record low of -49 reached in September 2022. Consumers like financial certainty, and this has to be the cornerstone if we are to see confidence break out into positive territory.”

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