Economy

Consumer confidence remains at historic low in July

The measure for the general economic situation of the country during the last 12 months is down one point at -66; this is 23 points lower than in July 2021

UK consumer confidence remained at a historic low of -41 in July, according to GfK’s long-running Consumer Confidence Index.

GfK found that two measures were up, one was down and two were the same in comparison to the 24 June announcement.

The index measuring changes in personal finances over the last 12 months stayed the same at -23; this is 22 points worse than July 2021. It also found expectations for the general economic situation over the coming 12 months have stayed the same at -57; which is 52 points lower than July 2021.

Meanwhile, the forecast for personal finances over the next 12 months has increased two points to -26; this is 37 points lower than this time last year.

Interestingly, both the major purchase index and the savings index increased one and four points respectively, but remain 36 and seven points lower compared with 2021.

The measure for the general economic situation of the country during the last 12 months is down one point at -66; this is 23 points lower than in July 2021.

Joe Staton, Client Strategy director, GfK said: “Consumer confidence remains severely depressed this month as the impact of soaring food and fuel prices and rising interest rates continues to darken the financial mood of the nation.

“Despite a two-point uptick in our hopes for our personal financial situation for the next 12 months, which might reflect optimism over imminent change at the top of the UK government, the overall index languishes at a historic low amid acute concerns for the general economic situation.”

He added: “Against this financial backdrop, the UK electorate is looking for a new leadership with a commitment to unleashing growth, tackling inflation and cutting taxation. The successful candidate will need to deliver a much-needed shot in the economic arm of the country if they are to help improve consumer confidence.”

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