Consumer confidence remains flat as Covid restrictions affect growth

Consumer confidence
Consumers remain concerned about the short-term prospect of the nation’s economy
// Consumer confidence remains flat in June according to GfK’s Consumer Confidence Index
// Despite this, consumers continue to feel confident about personal finances

New research has shown that consumer confidence remained flat in June as the effects of Covid-19 restrictions continued to dampen growth.

Figures from GfK’s Consumer Confidence Index showed that the overall index remained at -9 this month.

While consumers remain concerned about the short-term prospect of the nation’s economy, they continue to feel confident about personal finances.

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Consumer confidence

Consumers’ confidence about their personal financial situation over the last 12 months jumped four percentage points to 0, while confidence for the next 12 months jumped one percentage point to 11 – a full 15 points higher than this time last year.

The major purchase index also jumped two points to -5 for the period, which was 27 points higher than for the same period last year.

Concerns about the general economic situation over the next 12 months also fell six points to -2, although GfK pointed out that this was still a full 46 points higher than June 2020.

Consumer confidence

“While the shifting sands of an end to lockdown might be the closest most of us get to a summer beach holiday, consumer confidence remains stable at -9 after 16 months of a Covid-induced roller-coaster,” GfK client strategy director Joe Staton said.

“A repetition of last month’s score doesn’t mean confidence is about to nose-dive.

“The upwards trajectory for the index since the dark days at the start of the pandemic is currently still on track.

“However, forecasts for rising retail price inflation could weaken consumer confidence quickly and that may account for the six-point dip in June in our measure for the wider economy in the coming year.

“On a more positive note, we have strong numbers for our personal financial situation, both for the past year and the year to come.

“In addition, this month’s further improvement in the major purchase index – the third month in a row – could see shoppers spending in anticipation of a staycation summer.”

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