UK consumer confidence steady in July - GfK

UK consumer confidence was steady in July as lockdown measures were eased, according to a survey released on Friday by market research group GfK.

The survey was put together using data collected between 1 and 13 July and compared to the flash report published on 3 July.

GfK’s long-running consumer confidence index was unchanged from the flash report earlier in the month at -27, with three out of five measures of the index rising.

The index tracking people’s personal financial situation over the last 12 months improved a touch to -4 from -5, while the gauge tracking their situation over the next year ticked up to zero from -3.

The index for the general economic situation over the last 12 months edged down to -61 from -60 and the gauge for the general situation over the next year nudged up to -41 from -42.

The major purchase index declined to -26 from -25.

Joe Staton, client strategy director at GfK, said: "There’s been little to boost the public’s mood as the cost of the pandemic to the UK’s economy is becoming apparent. Amidst significant job losses and the end of the furlough scheme, it is perhaps surprising consumer confidence has held steady at -27 this month.

"Many people have been savvy and saved money during lockdown, as the most recent GDP figures show. That could explain the one bright spark on the horizon - the three-point uptick in consumer expectations for the financial position of their households in the next 12 months. The way we perceive our ’future wallets’ is key as it’s the one area over which we have day-to-day control and is a good indicator of our personal financial outlook for the year to come."

Shore Capital said the report lacks any strong momentum but is probably fitting to the current situation in the UK.

"The country is slowly attempting to return to some form normality through the reopening of non-essential shops and the hospitality sector," analysts said.

"The latest figures from BRC-KPMG’s Retail Sales Monitor, saw the UK retail sales notable improve during June, with total sales increased by 3.4% against a quite soft comparative of minus 1.6%, well above the twelve-month average decline of 2.1%. However, we note the increasing worry concerning consumers employment statuses and household expenditure which it is yet fully be included. We continue to see the GfK confidence index as fragile and volatile, and we believe this will be the case for many months ahead."