UK consumer confidence dipped in July as two measures were down during the month, while major purchases improved slightly.
According to the latest GfK Consumer Confidence Index, overall figures decreased by one point to -19 in July. Two measures were down, one was up and two were unchanged in comparison to last month’s announcement.
The Major Purchase Index, which includes big ticket items such as furniture, is up one point at -15; this is one point higher than this month last year.
The measure for the general economic situation of the country during the last 12 months is down one point to -44; this is 12 points worse than in July 2024.
The index measuring changes in personal finances during the last year is unchanged at -7; this is one point better than July 2024.
The Savings Index has jumped seven points to +34 in July; this is seven points higher than this time last year.
Neil Bellamy, Consumer Insights Director at GfK, an NIQ Company, says: “The key measures on personal finances, the economy and purchase intentions are flat in July, and many will conclude that consumers are in a cautious wait-and-see mood. But the data suggests that some people may be sensing stormy conditions ahead.
“With speculation growing over possible tax rises in the Autumn Budget, and price pressure contributing not just to higher inflation already but also to the likelihood of worse inflation to come, the news is worrying. Our Savings Index is significant this month because it does indeed suggest people are anxious. It has jumped seven points to +34 to reach the highest level since November 2007.
“This sub measure is not part of our Overall Index Score, but it does reveal that those people who can put money aside are building contingency funds. Looking at the Overall Index Score of -19 for July, it’s difficult to see what will lift it meaningfully higher in the months to come. It has drifted quietly downwards over the past year, and any fresh challenges or shocks could easily push confidence sharply lower.”
