Consumer confidence remained flat in August but expectations for the UK economy slipped for the first time since February, according to the latest GfK Consumer Confidence Barometer.

The overall index score for consumer confidence remained unchanged at -13 in August. Three indexes were up and two were down compared with last month.

The index measuring consumers’ confidence in their personal financial situation over the past 12 months was up by one point to -7.

When looking ahead to the next 12 months, the personal financial situation index increased by three points to six, which was nine points higher than this time last year.

 

Consumer confidence in the general economic situation over the past 12 months decreased by three points to -35. When looking at the next 12 months, this index decreased by four points to -15, its first fall since February this year.

The major purchase index rose by three points to -13, while the savings index over the next 12 months increased by six points to 33 – six points higher than it was this time last year. 

Joe Staton, client strategy director at GfK, says: “The overall index score is unchanged at -13, although there are interesting contrasts behind this headline.

“On the one hand, our expectations for the UK’s economy are down for the first time since February, with this measure registering a four-point decrease to -15. There’s a three-point drop in how consumers view the economy over the past year, too.

“At the same time, there are strong personal financial expectations for the coming year, with a three-point uptick in this measure from to six. This more positive outlook may be due to a mortgage-friendly interest rate cut at the beginning of August – and hopes of more to come.

“The three-point jump in the major purchase index is great news for retailers, with more shoppers agreeing that now is a good time to buy big-ticket items.

“The wider point beyond the contrasts is that all the key numbers this month are significantly more encouraging than 12 and 24 months ago. But as we move into autumn and winter, how much further will this slow improvement in the mood of the nation run?”

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