Consumer confidence holds steady but plunges amongst younger adults
GfK’s latest Consumer Confidence Index has shown that confidence has remained flat in June, although it has plunged amongst younger adults.
While the headline index is unchanged from May at -23, the measure for expectations for the general economic situation over the coming 12 months has risen two points to -36, which is eight points below June last year.
Subscribe to TRBThe forecast for personal finances over the next year remains flat at -2, while the major purchase index has also held steady, staying at -20 for a second month.
However, GfK has warned that the headline figure could be misleading as beneath the surface, there are new signs that confidence is weakening.
Neil Bellamy, consumer insights director at GfK, said: “The biggest fall this month is among those aged 16 to 29, traditionally one of the most optimistic groups. Here confidence has dropped 11 points over the past month to -2, the lowest level seen for two years, driven by large falls in views on both their own personal finances and the wider economy.
“More broadly, there are now no demographic groups with a positive confidence score, including higher-income households earning £50,000 or more, who have slipped back into negative territory as of June. Confidence remains subdued and vulnerable to further economic or political uncertainty”
