GfK’s Consumer Confidence Index decreased six points to -30 in July. All five measures were down in comparison to last month’s announcement, with the Major Purchase Index down seven points to -32 (up two points YoY).
Joe Staton, client strategy director, GfK, says: “For the first six months of 2023, UK consumer confidence improved despite the headwinds of the cost of living crisis, with double-digit inflation outpacing income growth and rising interest rates impacting both homeowners and renters alike.
"Suddenly, this resilience has collapsed, resulting in a six-point fall this month in the headline score. There are clear concerns for the coming year for our personal finances and for the wider UK economy, with these measures down six and eight points, respectively. The recent fall in headline inflation will do little to improve the financial mood – consumers need to see falling prices and interest rates before that happens.
"Reality has started to bite and, as people continue to struggle to make ends meet, consumers will pull back from spending, as is clear from the seven-point drop in this month’s measure of major purchase intentions. All in all it’s bad news. People are feeling economic pain and this confidence deficit needs to be reversed before the gains this year are lost.”
