UK consumer confidence has fallen to the lowest level since records began during the month of June, according to the latest figures from GfK.
GfK’s long-running Consumer Confidence Index decreased one point to -41, a new record with four measures down in comparison to the May 20 announcement, with one remaining flat.
It revealed the index measuring changes in personal finances over the last 12 months decreased one point to -23; this is 23 points worse than June 2021. The forecast for personal finances also decreased three points to -28; this is 39 points lower than this time last year.
The measure for the general economic situation of the country was also down two points at -65; this is 18 points lower than in June 2021.
Consumer expectations for the general economic situation have also taken a hit during the month, falling one point to -57; this is 55 points lower than June 2021.
Notably, the Savings Index is down one point this month at +9; this is 12 points lower than this time last year with the Major Purchase Index having stayed the same in June at -35; 30 points lower than the previous year.
Joe Staton, Client Strategy director, said: “With a headline score of -41 for June, the GfK Consumer Confidence Barometer has set a record low for the second successive month. The four scores on our personal finances and the wider UK economic picture have all dropped and our measure on major purchase intentions is flat.
“With prices rising faster than wages, and the prospect of strikes and spiralling inflation causing a summer of discontent, many will be surprised that the index has not dropped further. The consumer mood is currently darker than in the early stages of the Covid pandemic, the result of the 2016 Brexit referendum, and even the shock of the 2008 global financial crisis, and now there’s talk of a looming recession.”
He added: “One thing is for sure, Britain faces a stark new economic reality and history shows that consumers will not hesitate to retrench and tighten their purse strings when the going gets tough.”