UK consumer confidence remains steady despite nearing record low

GfK’s long-running Consumer Confidence Index has remained at -34 for April, only five points away from the record -39 low seen in July 2008.

The measure for the general economic situation of the country during the last 12 months dropped by four points to -44 during the period, which is 14 points lower than in April 2019.

Expectations for the general economic situation over the next 12 months remain the same at -56 points, but still 22 points lower when compared with the same month last year.

The Major Purchase Index has also stayed at -52 in April. This is 51 points lower than it was in April 2019.

Joe Staton, client strategy director, said: “Consumer Confidence has stayed steady at the minus -34 points recorded in our first Covid-19 flash of April 6. It is too early to say whether this has now stabilised after weeks of adjustment to the reality of lockdown life, or whether further falls are to come.

“Interestingly, we are recording a three-point rise in expectations for personal finances for the next 12-months, although it is important not to attach too much significance to this until we have further tracking.”

He added: “It’s no surprise that the Major Purchase Index remains low: despite households making online purchases of home cooking equipment, freezers, TVs, monitors and other goods, these surges in demand have not compensated for the loss of overall retail sales due to the closure of physical stores.”