The bubble of optimism created by April’s royal wedding has well and truly burst, as new figures today show consumer confidence down again this month.
Overall consumer confidence, according to the latest index from GfK NOP, dropped to -25 in June compared to -21 in the previous month.
Confidence in the general economic situation took the biggest battering in the results, down six index points, but all five measure showed a decline.
Nick Moon, Managing Director of GfK NOP Social Research, commented: “It was almost inevitable that there would be a drop confidence in June following last month’s unique, feel-good circumstances of public holidays and the royal wedding.
“What will disappoint the government is that the drop is so large – wiping out half of last month’s gain and leaving consumer confidence lower than it was at any point in 2010.”
This time last year the overall index score was -19 and the level of people saying ‘now is a good time to save’ fell eight points to -9 in the month.
June’s level of consumer confidence is still much higher then every other month this year, barring May, but personal finances for the average consumer are unlikely to improve any time soon demonstrated by the steep decline in people’s outlook on their personal financial this month.
Moon added: “Across the board, confidence is lower than it was this time last year.
Consumers’ feeling about their own financial situation over the coming twelve months may have been the best scoring item but it still suffered a five-point drop in June, leaving it at -8.
“As we move into the summer, the outlook for the beleaguered high street remains a gloomy one.”