Consumer confidence in the UK remained unchanged in June as lingering Covid-19 restrictions combined with the threat of inflation held back improvements in other areas.
GfK’s Consumer Confidence Index remained at -9 this month with four of the five measures used to generate the figure improving.
The only one to fall was expectations for the general economic situation over the coming 12 months, which dropped by six points to -2. Recent data suggests that retail inflation is accelerating due to cost issues around commodities and the supply chain. It is feared that higher prices will hit consumer confidence and slow the country’s economic recovery.
However, GfK’s data suggests consumers are still in the mood for spending with the major purchase index increasing by two points to -5. The index for the forecast for personal finances over the next 12 months also came in one point higher in June at 11.
“A repetition of last month’s score doesn’t mean confidence is about to nose-dive. The upwards trajectory for the index since the dark days at the start of the pandemic is currently still on track,” said Joe Staton, Client Strategy Director GfK.
“We have strong numbers for our personal financial situation, both for the past year and the year to come. In addition, this month’s further improvement in the major purchase index – the third month in a row – could see shoppers spending in anticipation of a staycation summer.”
