Consumer confidence improves in August
GfK’s long-running Consumer Confidence Index has risen by five points to -25 in August as people feel slightly more optimistic about the outlook for their personal financial situation.
The firm’s measure for the forecast for personal finances over the next 12 months has increased by four points to -3, which is 28 points higher than this time last year.
Joe Staton, client strategy director at GfK, said: “Against a backdrop of falling core inflation, higher interest rates and rising average weekly earnings, the Consumer Confidence Index has regained momentum this month with a welcome five-point improvement.”
While GfK’s major purchase index is up eight points to -24, the measure for expectations for the general economic situation over the next 12 months has increased by three points to -30; this is 30 points better than August 2022.
Staton added: “Although the headline figure remains strongly negative at -25, hopes for our personal financial situation for the coming year are heading back towards positive territory, a metric that is key to indicating the future financial position of households.
“This renewed optimism can also be seen in the similar turnaround for our view on the general economic outlook for the next 12 months, and the eight-point advance in major purchase intentions is potentially better news for retailers as we move into autumn.”
