London, July 24th, 2020 – GfK’s long-running Consumer Confidence Index has remained at -27 for July. Three measures were up and two were down in comparison to the 4th COVID-19 flash of July 3rd.
Joe Staton, GfK’s Client Strategy Director, says: “There’s been little to boost the public’s mood as the cost of the pandemic to the UK’s economy is becoming apparent. Amidst significant job losses and the end of the furlough scheme, it is perhaps surprising Consumer Confidence has held steady at -27 this month.
"Many people have been savvy and saved money during lockdown, as the most recent GDP figures show. That could explain the one bright spark on the horizon -- the three-point uptick in consumer expectations for the financial position of their households in the next 12 months. The way we perceive our ’future wallets’ is key as it’s the one area over which we have day-to-day control and is a good indicator of our personal financial outlook for the year to come.”
The Overall Index Score has remained at -27 for July. Three measures were up and two were down in comparison to the 4th COVID-19 flash of July 3rd.
The index measuring changes in personal finances during the last 12 months is up one point to -4; this is five points lower than July 2019.
The forecast for personal finances over the next 12 months is up three points to zero this month; this is seven points lower than July 2019.
The measure for the general economic situation of the country during the last 12 months has decreased by one point to -61; this is 29 points lower than in July 2019.
Expectations for the general economic situation over the next 12 months are up by one point at -41 points; this is nine points lower than July 2019.
The Major Purchase Index has decreased one point to -26 in July; this is 30 points lower than it was in July 2019.
The Savings Index has improved by eight points in July to +21; this is four points lower than at this time last year.
About the survey
Personal Financial Situation
This index is based on the following questions to consumers: ‘How has the financial situation of your household changed over the last 12 months?’
‘How do you expect the financial position of your household to change over the next 12 months?’ (a lot better – a little better – stay(ed) the same – a little worse – a lot worse)
General Economic Situation
This index is based on the following questions to consumers: ‘How do you think the general economic situation in this country has changed over the last 12 months?’
‘How do you expect the general economic situation in this country to develop over the next 12 months?’
(a lot better – a little better – stay(ed) the same – a little worse - a lot worse)
Major Purchase Index
This index is based on the following question to consumers: ‘In view of the general economic situation, do you think now is the right time for people to make major purchases such as furniture or electrical goods?’
(right time – neither right nor wrong time – wrong time)
This index is based on the following question to consumers: ‘In view of the general economic situation do you think now is?’ (a very good time to save – a fairly good time to save – not a good time to save – a very bad time to save)
(Commented on but not included in the Index Score)
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