Consumer confidence drops as Brits save more and spend less

GfK
Consumer confidence remained above pre-pandemic levels, according to GfK's index
// Consumer confidence in the UK edged down in August
// GfK’s consumer confidence index fell by one point to -8 this month

Consumer confidence in the UK edged down in August but remained at pre-pandemic levels as households lost some confidence in the economy.

GfK’s consumer confidence index fell by one point to -8 in August as households cut back on spending, following an initial boost when the economy emerged from lockdown in April.

The major purchase sub-index fell by five points to -3, while the savings index rose by five points to 25.


READ MORE: Consumer confidence rises in July


While the overall index was still a negative score, it was one point ahead of March last year before the first national lockdown hit.

“Expectations for our personal financial situation for the coming 12 months are holding up and this positivity bodes well for the economy going forwards this year and next,” GfK client strategy director, Joe Staton said.

“Interestingly, this month the five-point fall in the major purchase index is counterbalanced by the five-point rise in the savings index, suggesting that consumers could be considering switching into saving rather than spending.”

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