GfK’s long-running Consumer Confidence Index has increased by five points this month to -7, with retail transactions enduring post-Brexit decision as motivation to save collapses. All five measures used to calculate the index saw increases.
Joe Staton, head of market dynamics at GfK, says: "We're reporting some recovery in the index this month as consumers settle into the new wait-and-see reality of a post-Brexit, pre-exit UK. The uptick in confidence is driven by good news from hard data, the combination of historic low interest rates matched with falling prices and high levels of employment.
"This can be seen in positive growth across all major measures including both our Personal and General Economic situation for the next 12-months. And at +7 points (a jump of nine points from last month), the Major Purchase Index reflects strong retail figures. But more remarkable is the 16-point collapse in the Savings Index (down from +1 last month to -15). We Brits are clearly determined to carry on shopping for today rather than saving for tomorrow."
The Major Purchase Index increased nine points this month to +7 – an improvement, but still 10 points lower than this time last year.