GfK’s Consumer Confidence Index increased to -7 in July. Two measures were up in comparison to the June 25th announcement – including the Major Purchase Index, which increased by seven points to +2, an impressive 28 points higher YoY – two measures were down, and one stayed the same.
Joe Staton, client strategy director, GfK, says: “Consumer confidence edged ahead of its March 2020 pre-lockdown headline score by two points to -7 in July and has held firm or improved for six months in a row.
"Personal finance expectations for the next year remain strong and there’s a dramatic jump this month in our major purchase sub-measure, with shoppers agreeing that now is the ‘right time to buy’.
"The healthy seven-point rise aligns with strong retail growth figures that reflect the gradual unlocking of the UK high street and release of pent-up demand as Brits hit shops, restaurants and venues. However, threats from increasing consumer price inflation, Covid variants and rising infection figures, the looming end of furlough and the Job Retention Scheme, could put the brakes on this rebound.
"Consumers are aware of these pressures, judging from the latest fall – from -2 to -5 – in how they view the general economy in the year ahead. What happens across the remaining summer months will frame consumer confidence for the rest of 2021 and beyond.”