Latest data from GfK shows that consumer confidence remained flat in August after expectations for the UK economy slipped for the first time since February.
However, people’s expectations for their personal finances for the coming year improved after the mortgage-friendly interest rate cut at the beginning of the month. There was also a three-point jump in the major purchase index, which is potentially good news for retailers if more shoppers decide to buy big-ticket items.
The overall GfK index score stood at -13 in August, the same as July. Three measures were up and two were down in comparison to last month’s announcement.
Joe Staton, Client Strategy Director GfK, said: “The wider point beyond the contrasts is that all the key numbers this month are significantly more encouraging than 12 and 24 months ago. But as we move into autumn and winter, how much further will this slow improvement in the mood of the nation run?”
Meanwhile, Matt Coode, Retail and Leisure Partner at OC&C Strategy Consultants, commented: “OC&C’s annual Retail Proposition Index points to a strong recovery in consumer attitudes to spending versus a year ago. Households perceive that their financial pressures are easing, and two-thirds of consumers expect to have more disposable income to spend over the coming year (a 50% increase on a year ago).
“While we haven’t yet seen this consistently translate into retail sales, we expect this to create a more positive outlook for UK retailers and leisure operators over the next 12 months.”
