Consumer confidence ‘battered and bruised’ by coronavirus crisis
Latest research has found that consumer confidence has been “battered and bruised” by the impact of the coronavirus pandemic in the UK.
According to GfK’s longstanding Consumer Confidence Index, the overall index score decreased by one point to -34 in May compared to two weeks earlier.
Joe Staton, GfK’s client strategy director, said: “At -34, consumer confidence remains battered and bruised despite efforts at loosening the Covid- 19 restrictions. With unemployment claims rising by the highest rate on record and warnings of a severe recession and possible tax hikes, the damage done by the coronavirus pandemic to the UK economic landscape has been laid bare.”
While there were two point uplifts in both the index measuring people’s expectations for their personal finances in the next 12 months and in the major purchase index, there was a one point decline in the index measuring people’s expectations for the general economic situation in the period.
Staton added: The lower scores we have registered on the general economic situation reflect this and the Government is dampening down expectations of an immediate economic bounce back. So despite plans to get the country up and running, consumers feel we are not out of the woods yet. Confidence will remain fragile for some time and the possibility of another spike in Covid-19 cases as we adapt to the ‘new normal’ is an obvious danger.”
Photo by Georgia Hawkins.
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