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Coronavirus

Consumer confidence remains stable despite restrictions delay

GfK found that the Major Purchase Index has improved by two points to -5 in June - some 27 points higher than it was this month last year

Consumer confidence remained stable at -9 in June despite the government’s recent announcement to delay the easing of Covid-19 restrictions, according to GfK’s long-running Consumer Confidence Index.

The index revealed that although four measures were up in comparison to the 21 May announcement, one measure was down.

The index measuring changes in personal finances over the last 12 months was found to be up four points at 0; this is nine points better than June 2020. The forecast for personal finances over the next 12 months was also one point higher this month at +11 – this is 15 points higher than this time last year.

In addition, it found that the measure for the general economic situation of the country during the last 12 months is up one point at -47; this is 12 points higher than in June 2020. This is despite the expectations for the general economic situation over the coming 12 months having dropped by six points to -2; but this is still 46 points higher than June 2020.

GfK also found that the Major Purchase Index has improved by two points to -5 in June – some 27 points higher than it was this month last year.

The Savings Index is down one point to +21 in June, around five points higher than this time last year.

Joe Staton, Client Strategy director GfK, said: “While the shifting sands of an end to lockdown might be the closest most of us get to a summer beach holiday, consumer confidence remains stable at -9 after 16 months of a Covid-induced roller-coaster.

“A repetition of last month’s score doesn’t mean confidence is about to nose-dive. The upwards trajectory for the Index since the dark days at the start of the pandemic is currently still on track.”

He added: “However, forecasts for rising retail price inflation could weaken consumer confidence quickly and that may account for the six-point dip in June in our measure for the wider economy in the coming year.

“On a more positive note, we have strong numbers for our personal financial situation, both for the past year and the year to come. In addition, this month’s further improvement in the Major Purchase Index – the third month in a row – could see shoppers spending in anticipation of a staycation summer.”

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