UK consumer confidence increased for the fifth month in a row despite “fierce economic headwinds of the cost-of-living crisis” and “double-digit grocery price increases”.
The overall index score for consumer confidence inched up three points to -24 in June, according to the latest GfK Consumer Confidence Index.
The index measuring consumers’ confidence in their personal financial situation over the past 12 months increased five points to -15 and increased seven points to -1 over the next 12 months.
Consumer confidence in the general economic situation over the past 12 months remained flat at -54 and jumped five points to -25 when looking at their confidence over the next 12 months.
The Major Purchase Index saw a fall of one point to -25, while the Savings Index increased six points to 25 – 16 points higher than this time last year.
GfK client strategy director Joe Staton said: “Despite the fierce economic headwinds of the cost-of-living crisis, double-digit grocery price increases and the mortgage squeeze severely impacting both homeowners and renters alike, the UK Consumer Confidence Index has improved by another three points in June, the fifth monthly improvement in a row.
“The most telling finding is how we see our personal financial situation in the coming year – the money going in and out of our bank accounts – which shows a healthy seven-point increase.
“This is a whisker away from pushing into positive territory, something we have not seen since December 2021, and it’s also the third consecutive monthly increase – all of which is good news for the future.
“Consumers are showing remarkable resilience in the face of inflation that is currently refusing to yield. This is the best showing for the Overall Index Score for the past 17 months and, if consumers continue to weather the current economic storm, then this will provide a firm foundation for getting back to growth.”