Consumer confidence in the UK has seen a 'subdued' improvement in July, according to the GfK Consumer Confidence Barometer

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UK consumer confidence inched up one point in July showing a “subdued” improvement after a three-point rise in June, according to the latest GfK consumer confidence figures

Headline figures

• The overall index score edged up by one point to reach -13 in July.

• Consumer confidence in personal finances during the past 12 months increased two points to -8, improving by 12 points versus July 2023.

• The forecast for personal finances over the next 12 months decreased one point to 3. However, this is 10 points higher than this time last year.

• The index measuring the general economic situation during the last 12 months remains the same at -32. This is 26 points higher than recorded in July 2023.

• Looking ahead, expectations for the general economic situation in the next year remains unchanged at -11.

• The index measuring the major purchase index rose seven points to -16 in July, while the savings index increased five points to 27.

To sum up, two indexes measuring consumer confidence went up, two remained unchanged, and one measure was down on last month’s figures in the Gfk report.

Consumers remain cautious

Gfk client strategy director Joe Staton said: “There was a subdued one-point improvement in the overall index score in July with only two of the five measures increasing.

“The seven-point uptick in the major purchase index is potentially good news for retailers: it could translate into improved footfall in the months to come.”

He continued: “The positive view on personal finances is encouraging with July’s score of -8, for the measure looking back over the last 12 months, up two points on the month before and the best since January 2022. But the consumer view on the UK’s wider economy has paused with scores that are identical to last month.

“Two important events during the survey period (UK general election result on July 5 and England sealing its place on July 10 in the Euro 2024 final) could have boosted the national mood but appear to have had limited positive impact.

“So, July’s consumer confidence poll suggests a note of caution as people wait to see exactly how the UK’s new government will affect the wider economy and their personal finances.”