Consumer confidence edges up in June but remains fragile
Consumer confidence has risen in June but remains fragile due to turmoil in the Middle East and the “dark shadow” of inflation.
GfK’s long running Consumer Confidence Index has increased by two points to -18 in June.
While the forecast for personal finances over the next 12 months remains unchanged from May at +2, GfK’s measure for expectations for the general economic situation has risen by five points to -28; this is 17 points worse than June 2024.
Meanwhile, GfK’s major purchase index is unchanged at -16 this month, which is is seven points better than this time last year.
Never Miss a Retail Update!Neil Bellamy, consumer insights director at GfK, an NIQ Company, explained: “Consumers have been resolute in their views on their wallets, with June’s personal financial situation scores (past and future) unchanged from May.
“Yet confidence is still fragile because the dark shadow of inflation is a day-to- day challenge for so many of us.
“With petrol prices set to rise in the coming weeks following the escalation of the conflict in the Middle East, and with ongoing uncertainty as to the full impact of tariffs, there is still much that could negatively impact consumers.”
The news comes as figures from the Office for National Statistics (ONS) show that retail sales fell at the fastest pace in more than a year in May.
Sales volumes were down 2.7% to mark the biggest monthly drop since December 2023.
Food stores sales volumes declined by 5% following growth of 4.7% in April. The ONS said was mainly due of reduced sales volumes in supermarkets, with retailers reporting customer cutbacks and a decline in sales of alcohol and tobacco products.
Meanwhile, non-food stores sales volumes fell by 1.4% over the month with clothing and household goods stores impacted the most.
