UK consumer confidence increased one point in July as two measures rose during the month, including major purchases.
According to the latest GfK Consumer Confidence Index, overall figures increased one point to -13 in July. Two measures were up, one was down 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 seven points to -16; this is 16 points higher than this month last year.
The measure for the general economic situation of the country during the last 12 months is unchanged at -32; this is 26 points higher than in July 2023.
The index measuring changes in personal finances during the last year is up two points at -8; this is 12 points better than July 2023.
The Savings Index has increased five points to +27 in June; this is one point higher than this time last year.
Joe Staton, Client Strategy Director, GfK, says: “There was a subdued one-point improvement in the Overall Index Score in July with only two of the five measures increasing. The seven-point uptick in the major purchase index is potentially good news for retailers that could translate into improved footfall in the months to come.
“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. But the consumer view on the UK’s wider economy has paused with scores that are identical to last month.
“Two important events during the survey period (UK general election result on July 5th, and England sealing its place on July 10th in the UEFA Euro 2024 Final) could have boosted the national mood but appear to have had limited positive impact.
“So, July’s consumer confidence poll suggests a note of caution as people wait to see exactly how the UK’s new government will affect the wider economy and their personal finances.”
