UK consumer confidence remains stable in August
Lastly, the savings index has increased six points to +33; this is six points higher than this time last year
UK consumer confidence has remained stable in August at -13, according to GfK’s long-running index.
The survey revealed that three measures were up and two were down in comparison with last month’s announcement.
The index measuring changes in personal finances during the last year was up one point at -7. Meanwhile, the survey revealed that the forecast about personal finances was up three points at +6, which is nine points higher than this time last year.
The measure for the general economic situation of the country during the last 12 months was down three points at -35. Expectations for the general economic situation over the next 12 months were down four points at -15; this is 15 points better than August 2023.
Additionally, the major purchase index was up three points to -13; this is 11 points higher than this month last year.
Lastly, the savings index has increased six points to +33; this is six points higher than this time last year.
Joe Staton, Client Strategy director of GfK, said: “The Overall Index Score is unchanged at -13, although there are interesting contrasts behind this headline. On the one hand, our expectations for the UK’s economy are down for the first time since February, with this measure registering a four-point decrease to -15.
“There’s a three-point drop in how consumers view the economy over the past year too. At the same time, there are strong personal financial expectations for the coming year with a three-point uptick in this measure to +6. This more positive outlook may be due to a mortgage friendly interest rate cut at the beginning of August – and hopes of more to come.”
Staton added: “The three-point jump in the Major Purchase Index is great news for retailers with more shoppers agreeing that now is a good time to buy big-ticket items. The wider point beyond the contrasts is that all the key numbers this month are significantly more encouraging than 12 and 24 months ago. But as we move into autumn and winter, how much further will this slow improvement in the mood of the nation run?”
