The GFK Consumer Confidence Index reveals a modest improvement in June, but overall sentiment remains negative.
- Consumer optimism about the UK economy has increased, contributing to the rise in confidence.
- Three of the index’s five measures rose in June compared to the previous month.
- Personal financial outlooks are mixed, with some indicators rising and others falling.
- The cost of living crisis continues to impact household budgets, maintaining a negative headline score.
The GFK Consumer Confidence Index recorded a slight rise in June, with the overall score increasing by three points to -14. Despite this improvement, the index remains in negative territory, indicating ongoing consumer wariness. Increased optimism regarding the UK economy has driven this third consecutive monthly rise since March.The cost of living crisis, however, continues to exert pressure on household finances.
Out of the five measures included in the index, three showed an upward trend, while one declined and another remained unchanged compared to May’s figures. The index evaluating personal financial situations over the past year held steady at -10, although this is a notable five-point improvement from the same time last year.
The forecast for personal finances over the next year experienced a slight decline, dropping three points to +4. Despite this decrease, it remains five points higher than in June of the previous year.
A significant improvement was observed in the assessment of the country’s general economic situation, which rose by seven points to -32, a remarkable 22-point increase compared to June 2023. Looking ahead to the next 12 months, projections suggest a six-point rise to -11—14 points higher than the same time last year.
The major purchase index increased by three points to -23, marking a two-point rise compared to the previous year. Conversely, the savings index decreased by five points to +22, which is three points lower than the previous June.
Joe Staton, GFK’s client strategy director, commented on the findings, highlighting the improvement in consumer confidence and the growth in economic optimism. He noted, “While June’s reading of -14 is the third month in a row that confidence has increased, the headline score remains negative as a result of the difficulties so many have experienced as the unrelenting cost of living crisis batters household budgets.” The long-term trend suggests a robust recovery from the record low of -49 reached in September 2022.
Despite gradual improvements, consumer confidence remains challenged by the ongoing cost of living crisis.
