Consumer confidence ‘severely depressed’ despite improvement

GfK’s index showed an increase of one point to -33 in overall consumer confidence over the past two weeks. However, that is still is a 20-point decrease year on year, from -13 in 2019.

Consumers’ confidence in their personal finances for the next year improved by three points to -11. As people are at home during lockdown, many are spending less and the savings index climbed nine points to 14.

Those surveyed were slightly more optimistic about the general economic outlook for the next 12 months. GfK reported growth of three points to -53.

Similarly, the major purchase index recorded a three-point rise to -49.

GfK client strategy director Joe Staton said: “Despite a one-point improvement in our second Covid-19 flash report at -33, consumer confidence in Britain’s lockdown economy is still severely depressed.

“However, we are recording small improvements in our personal finances and the wider economic picture for the next 12 months, key indicators when gauging optimism for our path to recovery.

“Although the majority of high street retailers have been closed since March 23, we are also seeing a small pick-up in our major purchase index, a possible indication of pent-up demand once business returns to the ‘new normal’.

“But in contrast to this, the nine-point spike in the savings index suggests cautious consumers are stashing money under the mattress over worries for the future.”