29 May 2024, 13:24
By Furniture News Jun 30, 2016

UK consumers cautious pre-Brexit

GfK’s Consumer Confidence Index remained the same in June at -1. Two of the measures used to calculate the index saw increases, with one measure showing a decrease and the remaining two staying the same.

The Major Purchase Index stayed the same this month at +9 – seven points lower than this time last year.

Joe Staton, head of market dynamics at GfK, says: “This month’s GfK Consumer Confidence Index is based on interviewing carried out in the first two weeks of the month, as is the case every month. So our current data – using interviews from between June 1st and June 15th – clearly does not yet provide insights into how the major impact of the EU Referendum result has changed consumer sentiment.

“Nevertheless, one trend that continued in the run up to the referendum is a deepening pessimism over the general economic situation. As we approached voting day, this was already 18 points lower than in June 2015 and it’s almost certain we’ll see this worsening when next month’s results are in. Before the referendum there was an uptick in confidence about personal finances, and as of mid-June this measure was more positive than 12 months ago. But once again it is difficult to see this holding up.

“In these extraordinary consumer circumstances, all bets are off until we all know more. We can expect plenty of volatility in consumer confidence at least until Brexit negotiations are underway. The longer term mood will then depend on how smoothly those negotiations go.”

GfK says it will run an interim survey shortly to assess Brexit’s impact on the Consumer Confidence Barometer.

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