UK consumer confidence has set a record low for the second successive month.
According to the latest GfK Consumer Confidence Index, overall figures saw a decrease by one point to -41 in June, its lowest score since records began in 1974. Four measures were down in comparison to the May 20th announcement, and one was flat.
The Major Purchase Index, which includes big ticket items such as furniture, has stayed the same in June at -35; this is 30 points lower than this month last year.
The measure for the general economic situation of the country during the last 12 months is down two points at -65; this is 18 points lower than in June 2021.
The index measuring changes in personal finances over the last 12 months has decreased one point to -23; this is 23 points worse than June 2021.
The Savings Index is down one point this month at +9; this is 12 points lower than this time last year.
Joe Staton, Client Strategy Director GfK, says: “With a headline score of -41 for June, the GfK Consumer Confidence Barometer has set a record low for the second successive month. The four scores on our personal finances and the wider UK economic picture have all dropped and our measure on major purchase intentions is flat.
“With prices rising faster than wages, and the prospect of strikes and spiralling inflation causing a summer of discontent, many will be surprised that the index has not dropped further. The consumer mood is currently darker than in the early stages of the Covid pandemic, the result of the 2016 Brexit referendum, and even the shock of the 2008 global financial crisis, and now there’s talk of a looming recession.
“One thing is for sure, Britain faces a stark new economic reality and history shows that consumers will not hesitate to retrench and tighten their purse strings when the going gets tough.”