GfK’s long-running Consumer Confidence Index decreased by one point to -19 in July. Two measures were down, one was up (the Major Purchase Index, up one point at -15, one point higher YoY) and two were unchanged in comparison to last month’s announcement.
Neil Bellamy, consumer insights director at GfK, an NIQ Company, says: “The key measures on personal finances, the economy and purchase intentions are flat in July, and many will conclude that consumers are in a cautious wait-and-see mood.
"But the data suggests that some people may be sensing stormy conditions ahead. With speculation growing over possible tax rises in the Autumn Budget, and price pressure contributing not just to higher inflation already but also to the likelihood of worse inflation to come, the news is worrying.
"Our Savings Index is significant this month because it does indeed suggest people are anxious. It has jumped seven points to +34 to reach the highest level since November 2007. This sub-measure is not part of our Overall Index Score, but it does reveal that those people who can put money aside are building contingency funds. Looking at the Overall Index Score of -19 for July, it’s difficult to see what will lift it meaningfully higher in the months to come. It has drifted quietly downwards over the past year, and any fresh challenges or shocks could easily push confidence sharply lower.”
