UK consumer confidence was unchanged in August as three measures rose during the month, including major purchases.
According to the latest GfK Consumer Confidence Index, overall figures stood at -13 in August, the same as July. Three measures were up and two were down in comparison to last month’s announcement.
The Major Purchase Index, which includes big ticket items such as furniture, is up three points to -13; this is 11 points higher than this month last year.
The measure for the general economic situation of the country during the last 12 months is down three points at -35; this is 17 points higher than in August 2023.
The index measuring changes in personal finances during the last year is up one point at -7; this is eight points better than August 2023.
The Savings Index has increased six points to +33; this is six points higher than this time last year.
Joe Staton, Client Strategy Director, GfK, says: “The Overall Index Score is unchanged at -13, although there are interesting contrasts behind this headline. On the one hand, our expectations for the UK’s economy are down for the first time since February, with this measure registering a four-point decrease to -15.
“There’s a three-point drop in how consumers view the economy last over the past year too. At the same time, there are strong personal financial expectations for the coming year with a three-point uptick in this measure to +6. This more positive outlook may be due to a mortgage friendly interest rate cut at the beginning of August – and hopes of more to come.
“The three-point jump in the Major Purchase Index is great news for retailers with more shoppers agreeing that now is a good time to buy big-ticket items. The wider point beyond the contrasts is that all the key numbers this month are significantly more encouraging than 12 and 24 months ago. But as we move into autumn and winter, how much further will this slow improvement in the mood of the nation run?”
