Despite the economic headwinds of the cost-of-living crisis, double-digit grocery price increases, and the mortgage squeeze, consumer confidence has increased for the fifth month in a row.
GfK’s Consumer Confidence Index increased three points to -24 in June, with three measures up, one down, and one unchanged compared to last month.
Joe Staton, Client Strategy Director at GfK, noted that the most telling finding was how people view their personal financial situation in the coming year, which showed a seven-point increase. This is a whisker away from pushing into positive territory, something GfK has not seen since December 2021.
Staton said: “Consumers are showing remarkable resilience in the face of inflation that is currently refusing to yield. This is the best showing for the Overall Index Score for the past 17 months and, if consumers continue to weather the current economic storm, then this will provide a firm foundation for getting back to growth.”
However, most analysts think the recent surge in mortgage rates will dampen consumer spending in the coming months, despite an easing in energy prices.
