Young adults lift UK consumer confidence despite economic concerns

Consumer confidence in the UK rose modestly in June, buoyed by optimism among younger age groups despite continuing concerns over inflation and global instability, according to new data from GfK.

The research firm’s long-running Consumer Confidence Index increased by two points to -18, with improvements in views of the wider economy offsetting stagnant perceptions of personal finances.

While sentiment around the general economic situation improved – up three points when reflecting on the past 12 months and up five points looking ahead – assessments of personal finances remained flat. 

The index measuring personal finance change over the past year stayed at -7, while the 12-month forecast held steady at +2. 

The major purchase index – an indicator of consumers’ willingness to spend on big-ticket items – held at -16, though this marks a seven-point improvement from a year ago.

Meanwhile, the savings index fell by one point to +27, but remains five points higher than in June 2024.

The index covering the general economic situation over the past year rose to -43, while expectations for the year ahead improved to -28. Both figures, however, remain significantly lower than in June 2024.

Neil Bellamy, consumer insights director at GfK, said: “Consumers have been resolute in their views on their wallets with June’s personal financial situation scores (past and future) unchanged from May. Yet confidence is still fragile because the dark shadow of inflation is a day-to-day challenge for so many of us. 

“With petrol prices set to rise in the coming weeks following the escalation of the conflict in the Middle East, and with ongoing uncertainty as to the full impact of tariffs, there is still much that could negatively impact consumers. With so much volatility, now is certainly not the time to hope for the proverbial ‘light at the end of the tunnel’.”