Consumer confidence edged down this month as shopper concerns about the economy amid the coronavirus pandemic increased.
Consumer confidence declined one point this month to -34, according to the GfK’S consumer confidence index.
Shopper sentiment about the economy over the last year and for the year ahead fell seven points and one point to -55 and -54 respectively, as chancellor Rishi Sunak warned that the UK may be facing a “recession like we’ve never seen” earlier this week.
Both these scores are down 25 points respectively compared to May last year.
By contrast, consumer confidence in their personal finances increased during the month – up two points in regards to the year ahead at -9 and holding steady regarding the preceding 12 months at -4. However, these scores represent seven- and 14-point drops respectively year on year.
Shopper inclination to make major purchases climbed two points this month to -47.
GfK client strategy director Joe Staton said: “At -34, consumer confidence remains battered and bruised despite efforts at loosening the Covid-19 restrictions. With unemployment claims rising by the highest rate on record and warnings of a severe recession and possible tax hikes, the damage done by the coronavirus pandemic to the UK economic landscape has been laid bare.
“Despite plans to get the country up and running, consumers feel we are not out of the woods yet. Confidence will remain fragile for some time and the possibility of another spike in Covid-19 cases as we adapt to the ‘new normal’ is an obvious danger.”
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