UK consumer confidence subdued - GfK
By Abigail Townsend
Date: Friday 19 Jul 2024
(Sharecast News) - Consumer confidence remained subdued in July, a long-running survey showed on Friday, as people adopted a "wait and see" approach following the general election result.
The latest consumer confidence index from GfK was -13, up just one point on June.
Within that, people's perception of their personal finances over the year improved two points, to -8. But perceptions about their finances going forward eased one point, to 3.
Household opinions on the economy, both over the last 12 months and looking to the year ahead, were unchanged, at -32 and -11, respectively.
The only sub-measure that showed a notable increase was the major purchase index, up seven points at -16.
Joe Staton, client strategy director at GfK, said: "The seven-point uptick in the major purchase index is potentially good news for retailers that could translate into improved footfall in the months to come.
"But the consumer view on the UK's wider economy has paused. Two important events during the survey period - the general election result and Euro 2024 final - could have boosted the national mood, but appear to have had limited positive impact.
"July's poll suggests a note of caution as people wait to see exactly how the UK's new government will affect the wider economy and their personal finances."
Clive Black, head of consumer research at Shore Capital, said: "[July's] score is structurally better than the -48 that immediately followed the Truss-Kwarteng show, but also shows that British consumers took the reasonably inevitable UK election results in their stride.
"With no new shocks or surprises, we remain cautiously optimistic about the second half, especially the potential for gradual improvement on discretionary consumer goods demand."
The survey, which has been running since 1974, was carried out between 28 June and 12 July. A total of 2,005 individuals aged 16 and over took part.
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