A recent improvement in consumer confidence has come to a halt as the cost of the pandemic to the UK’s economy becomes more apparent by the day, with mounting jobs losses and business failures.
GfK’s long-running Consumer Confidence Index remained at -27 for July with three measures used to compile figure up and two down compared with last reading earlier this month.
The GfK confidence barometer had started to improve since record lows at the height of the pandemic. However, the continued weakness adds to doubts that the UK economy will experience a V-shaped recovery.
Joe Staton, GfK’s Client Strategy Director, highlighted that there has been little to boost the public’s mood, with the impending end of the government’s furlough scheme adding to some people’s concerns.
However, he added: “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.”
NAM Implication:
- Anyone getting the impression that the consumer fallout has not really started yet…?
