UK consumer confidence holds steady in June but youth optimism slumps

UK consumer confidence remained unchanged in June, but a sharp decline in optimism among young adults suggests underlying economic sentiment is weakening, according to new findings from GfK.

The long-running GfK Consumer Confidence Index held steady at –23 this month, matching the figure from May.

However, the most significant downturn occurred among consumers aged 16 to 29, a group traditionally seen as highly optimistic. Confidence within this cohort plunged by 11 points over the past month to –2, marking its lowest level in two years.

Assessments of personal finances also deteriorated, with the index tracking household finances over the last 12 months falling three points to –10. This score is three points lower than the level recorded in June last year.

Meanwhile, the forecast for personal financial situations over the coming 12 months remained flat at –2. The index measuring the general economic situation of the country over the past year dropped two points to –49.

Expectations for the wider economy over the next 12 months provided the only positive movement, rising two points to –36. The major purchase index stayed flat at –20, while the savings index dropped two points to 20.

GfK found that no demographic groups in the UK now hold a positive confidence score. Higher-income households earning £50,000 or more have also slipped back into negative territory this month.

GfK consumer insights director Neil Bellamy said: “The lack of movement in the headline figure is misleading as, beneath the surface, there are new signs that confidence is weakening. The biggest fall this month is among those aged 16 to 29, traditionally one of the most optimistic groups. Here confidence has dropped 11 points over the past month to -2, the lowest level seen for two years, driven by large falls in views on both their own personal finances and the wider economy.

“More broadly, there are now no demographic groups with a positive confidence score, including higher-income households earning £50,000 or more, who have slipped back into negative territory as of June. Confidence remains subdued and vulnerable to further economic or political uncertainty.”