GfK’s long-running Consumer Confidence Index stood at -13 in August, the same as July, as confidence in personal finances rose, but expectations for the UK economy slipped for first time since February.
Three measures were up, and two were down in comparison to last month’s announcement. The Major Purchase Index was up three points to -13 (+11 points higher YoY).
Joe Staton, client strategy director GfK, says: “The overall index score is unchanged at -13, although there are interesting contrasts behind this headline.
“On the one hand, our expectations for the UK’s economy are down for the first time since February, with this measure registering a four-point decrease to -15. There’s a three-point drop in how consumers view the economy last over the past year too.
“At the same time, there are strong personal financial expectations for the coming year, with a three-point uptick in this measure to +6. This more positive outlook may be due to a mortgage-friendly interest rate cut at the beginning of August – and hopes of more to come.
“The three-point jump in the Major Purchase Index is great news for retailers, with more shoppers agreeing that now is a good time to buy big-ticket items.
“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?”