London, August 25, 2023 – GfK’s long-running Consumer Confidence Index increased five points to -25 in August. All five measures were up in comparison to last month’s announcement.
Joe Staton, Client Strategy Director GfK, says: “Against a backdrop of falling core inflation, higher interest rates and rising average weekly earnings, the Consumer Confidence Index has regained momentum this month with a welcome five-point improvement. Although the headline figure remains strongly negative at -25, hopes for our personal financial situation for the coming year are heading back towards positive territory, a metric that is key to indicating the future financial position of households. This renewed optimism can also be seen in the similar turnaround for our view on the general economic outlook for the next 12 months, and the eight-point advance in major purchase intentions is potentially better news for retailers as we move into autumn. However, while the financial pulse of the nation is still weak, these signs of optimism are welcome during this challenging time for consumers across the UK.”
The Overall Index Score increased five points to -25 in August. All five measures were up in comparison to last month’s announcement.
The index measuring changes in personal finances during the last year is up five points at -15; this is 10 points better than August 2022.
The forecast for personal finances over the next 12 months increased four points to -3, which is 28 points higher than this time last year.
The measure for the general economic situation of the country during the last 12 months is up six points at -52; this is 16 points higher than in August 2022.
Expectations for the general economic situation over the next 12 months have increased by three points to -30; this is 30 points better than August 2022.
The Major Purchase Index is up eight points to -24; this is 14 points higher than this month last year.
The Savings Index is up one point to +27; this is nine points higher than this time last year.
Notes to editor
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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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