Consumer confidence rallies as shoppers show ‘resilience’

The overall index score in July hit -11, up two points ahead of the score registered in June and down one point in comparison with the score of -10 recorded during the same period last year.

According to the GfK’s Consumer Confidence Index, shopper sentiment registered the most significant jumps of six points each across the savings and major purchase index, which hit 25 and four respectively.

Shoppers’ confidence levels in their personal finances in the preceding 12 months and for the year ahead both recorded increases, up two points to one and five points to seven respectively.

Consumer confidence in the general economy over the last year held steady at -32, while sentiment regarding the general economy in the coming year edged up one point, also to -32.

GfK client strategy director Joe Staton said: “Pre-Brexit consumers are marginally more bullish this month with improvements in levels of confidence across most measures.

“Although it’s too soon to judge any impact of a post-Boris bounce, we can report a boost in attitudes to our personal financial situation in the face of low interest rates and day-to-day inflation, a buoyant labour market and growth in real wages.

“This confidence is further reflected in a six-point jump in the major purchase index. This mirrors the ongoing resilience in consumer spending, a key driver of economic growth and stable retail sales figures. Consumers have generally been less affected by Brexit uncertainties than businesses since the referendum. However, the coming months to the October 31st departure date will test the strength of this confidence. Will consumers greet the Halloween Brexit deadline with hurrahs or howls?”