The UK’s Consumer Confidence Index saw a slight uplift in July, though remaining cautious as it stays in negative territory at -13.
- Two key measures in the Consumer Confidence Index improved, indicating potential positive trends for retailers.
- Consumer sentiment on personal finances over the past year rose, suggesting a growing optimism.
- Major purchase intentions increased significantly, hinting at a prospective rebound in consumer spending.
- Despite positive financial indicators, overall economic outlook remains unchanged, reflecting consumer cautiousness.
The United Kingdom’s economic landscape observed a modest improvement in consumer confidence during July, reflected in a slight increase of the Consumer Confidence Index by one point, bringing it to -13. This shift from the previous -30 recorded in July 2023 suggests a gradual recovery in consumer sentiment. Nevertheless, the index remains in negative territory, indicating underlying caution among consumers.
Research, conducted by the market research firm GfK, assessed various consumer attitudes, paying attention to predictions about the general economic situation and financial positions of households. The study revealed two out of five indicators showed improvement compared to the previous month.
A notable seven-point rise in the major purchase index was recorded. This rise is potentially favourable news for retailers, as it could translate into increased footfall in the coming months. Joe Staton, the client strategy director at GfK, identified this increment as a promising development.
Consumer perspectives on personal financial situations over the last year saw an improvement of two points. Staton remarked, “The positive view on personal finances is encouraging with July’s score of -8, for the measure looking back over the last 12 months, up two points on the month before and the best since January 2022.” Despite this, the sentiment regarding the financial outlook for the coming year slightly declined.
The study included a sample of 2,005 individuals aged over 16 across the UK. Despite positive shifts in personal finance views, consumer attitudes towards the wider economic environment remained stable. The unchanged scores on this front underscore continued hesitance, particularly as new governmental policies and economic events—such as the UK general election and England’s participation in the UEFA Euro 2024 Final—had limited impact.
Participants exhibited caution as they await clarity on how recent political developments may affect the economy and their personal finances. Staton noted the cautious tone of the survey, remarking on the ‘wait and see’ approach adopted by many consumers.
The UK’s consumer confidence is cautiously optimistic with some indicators of improvement while maintaining an overall wary stance.
