Consumer confidence increases for fifth month in a row

23rd June 2023 | Jack Oliver

GfK’s Consumer Confidence Index continued its upwards trend in June, marking the fifth consecutive month of increasing scores.

The index rose three points to -24, with the majority of scores ahead of those recorded in May.

The long-standing index is measured in five measures:

Of those surveyed, opinions on personal financial situation over the last 12 months rose five points to -20, while personal financial situation for the next 12 months jumped seven points to -1.

Consumer opinions on the general economic situation over the last 12 months were unchanged, remaining at -54, while feelings about the next 12 months rose five points to -25.

The major purchase index, which measures consumer likelihood to make larger, discretionary purchases, was the only score to fall, recording a dip of one point to -25.

The savings index, which does not contribute to the overall score, was rose six points to 25.

Joe Staton, client strategy director at GfK, 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.”


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