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UK consumer confidence remained in steady this month, with expectations for personal finances improved as interest rates start to come down but with concern about the wider economy growing, survey results showed on Friday.
The GfK consumer confidence index registered a score of negative 13 points in August, the same as July. The index was compiled by research house GfK from a survey among 2,003 adults in the UK, with interviewing conducted between August 1 and 15.
Within the flat score, readings on personal financial situation increased both for the past 12 months and the coming 12 months. What’s more, the major purchase index also rose. However, the view on the general economic situation declined, both looking back and ahead.
‘On the one hand, our expectations for the UK’s economy are down for the first time since February, with this measure registering a four-point decrease to minus 15,’ commented GfK Client Strategy Director Joe Staton. ‘There’s a three-point drop in how consumers view the economy last over the past year too.
‘At the same time, there are strong personal financial expectations for the coming year with a three-point uptick in this measure to plus 6. This more positive outlook may be due to a mortgage friendly interest rate cut at the beginning of August and hopes of more to come.’
Staton noted that the three-point rise in the major purchase index is ‘great news for retailers’, suggesting a willingness to buy big-ticket items.
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