Consumer confidence remained low in July as shoppers feel the cost-of-living pinch

Cost-of-living

Consumer confidence reached an all-time low in June of -41 and remained the same in the month of July as the economic gloom spread, according to the latest data from the GfK Consumer Confidence Barometer.

Consumer sentiment towards their personal finances for the last 12 months also stayed flat at -23, which was 22 points worse than the same month last year.

Slight green shoots of hope about personal finances for the upcoming year were recorded, rising two points to -26. This was still 37 points lower than July 2021.

The measure for the general economic situation in the UK over the last year dropped one point to -66, down 23 points year on year.

 

Consumers’ concerns about the general economic situation in the year ahead remained the same at -57, a 52-point drop compared with July 2021.

The major purchase index climbed one point to -34, while the savings index increased by four points to 13.

GfK client strategy director Joe Staton said: “Consumer confidence remains severely depressed this month as the impact of soaring food and fuel prices and rising interest rates continue to darken the financial mood of the nation.

“Despite a two-point uptick in our hopes for our personal financial situation for the next 12 months, which might reflect optimism over imminent change at the top of the UK government, the overall index languishes at a historic low amid acute concerns for the general economic situation.

“Against this financial backdrop, the UK electorate is looking for new leadership with a commitment to unleashing growth, tackling inflation and cutting taxation. The successful candidate will need to deliver a much-needed shot in the economic arm of the country if they are to help improve consumer confidence.”