Consumer confidence down in June
New figures have shown that consumer confidence has fallen following the general election and that people are becoming more cautious about spending on major purchases.
The data from GfK’s long running Consumer Confidence Index decreased by five points to -10 in June.
Joe Staton, head of market dynamics at GfK, said: “This month’s survey covers the period before and after the UK general election and reveals a sharp drop in confidence among consumers across all measures. The overall index score is just two points away from last year’s post-Referendum low of -12. We have falls this month reflecting negative sentiment about our personal financial situation and expectations for the wider economy. The scores on the general economic situation looking forward and back 12 months are now particularly weak.”
The measure for the forecast for personal finances over the next 12 months fell by four points this month to 0 while the measure for expectations for the general economic situation over the same period decreased by two points to -23.
Meanwhile, the major purchase index dropped by eight points this month to 1; this is eight points lower than June 2016.
Staton added: “All this concern will worry the UK’s retailers, with this month’s plunge in the major purchase index reflecting our increased caution over non-food spending and our softening appetite for debt. Strong consumer spending has propped up the economy since last June but now the twin pressures of higher prices and sluggish wage growth are squeezing household finances and adding to widespread fears of a Brexit-induced economic slowdown.”
