August’s consumer confidence remains stable with no change from July’s score.
- Three measures in the Consumer Confidence Index saw an increase, while two saw a decline.
- A noteworthy three-point rise was observed in the Major Purchase Index.
- Consumer confidence concerning personal finances has shown improvement.
- Expectations for the UK economy have decreased for the first time since February.
The latest GfK UK Consumer Confidence Index reveals stability, holding steady at -13 in August, identical to July’s reading. This overall score masks underlying fluctuations in specific measures.
Among the components of the index, three exhibited positive movement while two moved in the opposite direction. Notably, the Major Purchase Index surged by three points, indicating a potential rise in consumer willingness to make significant purchases.
Confidence in personal financial expectations for the coming year has experienced an uplift, climbing three points from +6. This suggests improving perceptions of individual economic conditions among consumers.
Conversely, optimism regarding the broader UK economic landscape has waned. For the first time since February, this outlook decreased by four points to -15. The sentiments about the economy over the past year also witnessed a three-point decline.
Joe Staton, GfK’s client strategy director, remarked on the unchanged index, highlighting the contrasts in underlying data. Staton noted that the more favourable personal financial outlook might be associated with early August’s mortgage-friendly interest rate cuts, with anticipation of further reductions.
The August index, while negative, reflects progress compared to last year’s score of -25, marking a significant recovery in consumer sentiment over the year.
Overall, despite some negative trends, the consumer confidence index shows improvement from the previous year.
