UK consumer confidence up in June despite stubborn inflation

Consumer confidence in the UK has climbed in June, despite red-hot inflation, amid growing optimism on personal finances.

GfK’s consumer confidence index increased three points to negative 24 in June, from a tally of negative 27 in May. It marks the fifth monthly improvement in-a-row.

Despite ‘fierce economic headwinds’, three measures were up, while one was down and one was unchanged.

The index measuring changes in personal finances during the last 12 months was up five points on-month at minus 15, eight points better off a year prior.

The general economic situation index during the last 12 months was unchanged monthly at minus 54. It was 11 points higher than in June 2022, however.

The major purchase index, an indicator of confidence in buying big ticket items, was down one point to minus 25 in June, from minus 24 in May, however. It was =16 points higher than the same time last year.

‘The most telling finding is how we see our personal financial situation in the coming year – the money going in and out of our bank accounts – which shows a healthy seven-point increase. This is a whisker away from pushing into positive territory, something we have not seen since December 2021, and it’s also the third consecutive monthly increase – all of which is good news for the future,’ said GfK Client Strategy Director Joe Staton.

‘Consumers are showing remarkable resilience in the face of inflation that is currently refusing to yield. This is the best showing for the Overall Index Score for the past 17 months and, if consumers continue to weather the current economic storm, then this will provide a firm foundation for getting back to growth.’

The UK Consumer Confidence Barometer is conducted by GfK. This month’s survey was conducted among a sample of 2,000 individuals aged 16 and over.

Interviewing was conducted between June 1 and June 14.

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