Consumer confidence holds steady despite mounting job losses

Shopper sentiment registered a score of -27 this month, according to the GfK Consumer Confidence Index, up three points from the previous month but unchanged from the flash poll taken earlier in July.

Consumer confidence fell on two measures in comparison with the temperature check taken at the beginning of the month – down one point in relation to the economy over the past year to -61 and down one point on their inclination to make major purchases to -26.

In regard to the general economy over the next year shopper sentiment improved by one point to -41. But the most marked improvements were in relation to shoppers’ personal finances, indicating that many have taken advantage of lockdown as an opportunity to save.

Shopper sentiment in regard to personal finances over the past year and year to come rose one point to -4 and three points to 0 respectively, while the savings index registered an eight point uplift to 21.

GfK client strategy director Joe Staton said: “There’s been little to boost the public’s mood as the cost of the pandemic to the UK’s economy is becoming apparent. Amidst significant job losses and the end of the furlough scheme, it is perhaps surprising consumer confidence has held steady at -27 this month.

“Many people have been savvy and saved money during lockdown, as the most recent GDP figures show. That could explain the one bright spark on the horizon – the three-point uptick in consumer expectations for the financial position of their households in the next 12 months. The way we perceive our ‘future wallets’ is key as it’s the one area over which we have day-to-day control and is a good indicator of our personal financial outlook for the year to come.”