UK consumer confidence slumps - GfK

Consumer confidence slumped in July, a closely-watched survey showed on Friday, as higher interest rates and prices hit home.

The latest Consumer Confidence Index from GfK came in at -30 in July, a six point decline on June.

Within that, the score for the personal financial situation index over the coming year fell six points to -7, reversing the gains it made in June.

The forward-looking economic situation index fell eight points, to -33, while the major purchase index was down 7 points at -32. The savings index rose one point, to 26.

Joe Staton, client strategy director at GfK, said: “For the first six months of 2023, UK consumer confidence improved despite the headwinds of the cost of living crisis, with double-digit inflation outpacing income growth and rising interest rates impacting both homeowners and renters alike.

“Suddenly, this resilience has collapsed. There are clear concerns for the coming year.

“The recent fall in headline inflation will do little to improve the financial mood; consumers need to see falling prices and interest rates before that happens.”

GfK surveyed 2,001 individuals aged 16 and over between 3 and 13 July.