Consumer confidence dips in July

Consumer confidence dropped in July despite the boost of the World Cup and heatwave, a new survey suggests.

According to GfK’s most recent Consumer Confidence Index, which surveys 2,000 respondents, confidence dropped by one point to -10 compared with June. The index has registered confidence levels at zero or below zero since February 2016.

It also showed however, people were more confident about their financial situation with a positive balance of five saying they were optimistic about the next 12 months. But the data showed that people were cautious about spending due to slow wage growth and uncertainty regarding Brexit.

The Major Purchase Index, which measures how confident consumers feel about making major purchases, decreased two points this month to -2; one point lower than July 2017.

Joe Staton, client strategy director at GfK, said: “Despite the World Cup, Wimbledon and warm weather playing front and centre in the nation’s psyche this July, the barometer again reveals a decline in consumer confidence. The overall index score has now registered at zero or negative since February 2016.

“Concerns about our personal financial situation, and especially the general economic outlook, have contributed to this long slump.”

He added: “In the medium term, and during the uncertainty in the run-up to the UK leaving the European Union in eight months, it is hard to forecast what kind of good news will change the numbers from negative to positive, or indeed where such good news would originate.”