As expected, consumer confidence in the UK continued to fall this month, hitting the lowest levels since records began in 1974.
With the cost of living crisis worsening, GfK’s long-running Consumer Confidence Index dropped by one point to -41. Four measures were down in comparison to the May figures, and one was flat:
“With prices rising faster than wages, and the prospect of strikes and spiralling inflation causing a summer of discontent, many will be surprised that the index has not dropped further,” said Joe Staton, Client Strategy Director at GfK.
“The consumer mood is currently darker than in the early stages of the Covid pandemic, the result of the 2016 Brexit referendum, and even the shock of the 2008 global financial crisis, and now there’s talk of a looming recession.
“One thing is for sure, Britain faces a stark new economic reality and history shows that consumers will not hesitate to retrench and tighten their purse strings when the going gets tough.”
Official data released today confirmed that retail sales in the UK fell last month as squeezed households cut back on food spending amid surging inflation.
NAM Implications:
- Regular NamNews readers will not be surprised…
- …and are prepared for the worst.
- Time to count every ‘penny’.
- i.e. Divide planned expenditure by your net margin and multiply by 100…
- …to calculate the incremental sales required to fund the purchase.
