20 July 2024, 18:08
By Furniture News Jun 24, 2022

Consumer confidence sinks to record low

GfK’s Consumer Confidence Index decreased one point to -41 in June, setting a new record low.

Four measures were down in comparison to the May 20th announcement, and one, the Major Purchase Index, which reflects consumer willingness to purchase big-ticket items, stayed the same at -35 (down 30 points YoY).

Joe Staton, client strategy director, GfK, says: “With a headline score of -41 for June, the GfK Consumer Confidence Barometer has set a record low for the second successive month. The four scores on our personal finances and the wider UK economic picture have all dropped and our measure on major purchase intentions is flat.

"With prices rising faster than wages, and the prospect of strikes and spiralling inflation causing a summer of discontent, many will be surprised that the index has not dropped further. The consumer mood is currently darker than in the early stages of the Covid pandemic, the result of the 2016 Brexit referendum, and even the shock of the 2008 global financial crisis, and now there’s talk of a looming recession. One thing is for sure – Britain faces a stark new economic reality, and history shows that consumers will not hesitate to retrench and tighten their purse strings when the going gets tough.”

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