GfK’s UK Consumer Confidence Index has decreased three points to 4 in July. Three of the measures used to calculate the Index saw decreases this month, one measure saw an increase and one measure stayed the same.
Joe Staton, Head of Market Dynamics at GfK, says, "Concerns about the general economic situation in the UK for the next 12 months appear to be weighing heavily on consumers’ minds at present. We’ve seen a five-point drop in expectations into negative sentiment, a full ten points lower than this time in 2014. In part, driven by anxiety over the potential Grexit melt-down and global uncertainty, consumers are feeling less secure about wider economic prospects for the country as a whole this month.
"However, on a more personal level, consumers remain resolutely upbeat about their own financial situation for the coming 12 months. With wage inflation outstripping price inflation, and good news about improving growth and employment prospects, our expectations to next summer remain stable and considerably more optimistic than during July last year. Overall, despite this month’s dip, the underlying message is strong.”
Personal financial situation
The index measuring changes in personal finances during the last 12 months has stayed at 4 this month; this is 15 points higher than July 2014.
The forecast for personal finances over the next 12 months has increased one point to 6 this month; this is four points higher than July 2014.
General economic situation
The measure for the General Economic Situation of the country during the last 12 months has decreased five points this month to -1; this is six points higher than July 2014.
Expectations for the General Economic Situation over the next 12 months have decreased five points to -1; this is ten points lower than this time last year.
Major purchase index
The Major Purchase Index has decreased five points this month to 11; this is 14 points higher than this time last year.
The Savings Index has decreased one point to 3; which is 12 points higher than July 2014.
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