UK Consumer Confidence Unchanged In June

Brighter picture for personal finances but is the threat of inflation clouding prospects for the economy?

GfK’s long-running Consumer Confidence Index stayed at -9 in June. Four measures were up in comparison to the May 21st announcement and one measure was down.

Joe Staton, Client Strategy Director GfK, says: “While the shifting sands of an end to lockdown might be the closest most of us get to a summer beach holiday, consumer confidence remains stable at -9 after 16 months of a COVID-induced roller-coaster. A repetition of last month’s score doesn’t mean confidence is about to nose-dive. The upwards trajectory for the Index since the dark days at the start of the pandemic is currently still on track. However, forecasts for rising retail price inflation could weaken consumer confidence quickly and that may account for the six-point dip in June in our measure for the wider economy in the coming year. On a more positive note, we have strong numbers for our personal financial situation, both for the past year and the year to come. In addition, this month’s further improvement in the Major Purchase Index – the third month in a row – could see shoppers spending in anticipation of a staycation summer.”

UK Consumer Confidence Measures – June 2021

The Overall Index Score stayed at -9 in June. Four measures were up in comparison to the May 21st announcement and one measure was down

Personal Financial Situation

The index measuring changes in personal finances over the last 12 months is up four points at 0; this is nine points better than June 2020.

The forecast for personal finances over the next 12 months is one point higher this month at +11; this is 15 points higher than this time last year.

General Economic Situation

The measure for the general economic situation of the country during the last 12 months is up one point at -47; this is 12 points higher than in June 2020.  

Expectations for the general economic situation over the coming 12 months have dropped by six points to -2; but this is still 46 points higher than June 2020.

Major Purchase Index

The Major Purchase Index has improved by two points to -5 in June; this is 27 points higher than it was this month last year.

Savings Index

The Savings Index is down one point to +21 in June; this is five points higher than this time last year.

Source : Joe Staton, Client Strategy Director GfK

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