The British public is cautious about what’s to come when looking at the economy and their personal finances, according to the latest GfK consumer confidence index. 

According to GfK’s Consumer Confidence Barometer, the overall index score decreased by one point to -19 in July. 

“The key measures on personal finances, the economy and purchase intentions are flat in July, and many will conclude that consumers are in a cautious wait-and-see mood,” said NIQ GfK consumer insights director Neil Bellamy.

“But the data suggests that some people may be sensing stormy conditions ahead.”

 

Since last year, changes in personal finances is unchanged at -7; this is one point better than July 2024.

The forecast for personal finances over the next 12 months is also unchanged at +2; this is one point worse than this time last year.

The measure for the general economic situation of the country during the last 12 months is down one point to -44; which is 12 points worse than in July 2024.

Expectations for the general economic situation over the next 12 months have decreased one point to -29; this is 18 points worse than July 2024.

The Major Purchase Index is up one point at -15, one point higher than this month last year.

The Savings Index has jumped seven points to +34 in July; seven points higher than this time last year. 

Bellamy said: “With speculation growing over possible tax rises in the autumn Budget, and price pressure contributing not just to higher inflation already but also to the likelihood of worse inflation to come, the news is worrying. 

“Our Savings Index is significant this month because it does indeed suggest people are anxious. It has jumped seven points to +34 to reach the highest level since November 2007. 

“This sub-measure is not part of our Overall Index Score, but it does reveal that those people who can put money aside are building contingency funds. 

“Looking at the Overall Index Score of -19 for July, it’s difficult to see what will lift it meaningfully higher in the months to come. 

“It has drifted quietly downwards over the past year, and any fresh challenges or shocks could easily push confidence sharply lower.”

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