Consumers spooked by the recent Brexit vote appear to be regaining confidence about the country’s economic outlook and their personal finances.
Following a collapse in consumer confidence in the weeks following the vote to leave in EU, GfK’s latest Consumer Confidence Index for August increased by five points on the previous month to -7. All five measures used to calculate the Index saw increases, which analysts attributed to recent official data that showed surprisingly strong retail sales last month and an increase in employment, coupled with a soaring stock market.
Joe Staton, Head of Market Dynamics at GfK, commented: “We’re reporting some recovery in the Index this month as consumers settle into the new wait-and-see reality of a post-Brexit, pre-exit UK. The uptick in confidence is driven by good news from hard data, the combination of historic low interest rates matched with falling prices and high levels of employment. This can be seen in positive growth across all major measures including both our Personal and General Economic situation for the next 12-months. And at +7 points (a jump of nine points from last month), the Major Purchase Index reflects strong retail figures. But more remarkable is the 16-point collapse in the Savings Index (down from +1 last month to -15). We Brits are clearly determined to carry on shopping for today rather than saving for tomorrow.”
- Pragmatic NAMs are optimising every option presented by the market.
- Meanwhile, a longer view requires contemplation re. whether Brexit released a genie from the bottle, or merely allowed a peep outside…
- Either way, from a supplier and retailer perspective, it seems obvious that the consumer’s opinion and continuing goodwill needs cultivating and retention, or else…