New figures have shown that consumer confidence has increased in July as people remain optimistic about their personal finances in the year ahead and also feel more confident about making major purchases.
GfK’s long-running Consumer Confidence Index has risen by two points to -7 this month.
The index measuring the forecast for people’s personal finances over the next 12 months has remained the same as June at 11, although the measure for expectations for the general economic situation over the same period has declined by three points to -5.
Meanwhile, GfK’s major purchase index has increased by seven points to 2 in July.
Joe Staton, client strategy director at GfK, said: “Consumer confidence edged ahead of its March 2020 pre-lockdown headline score by two points to -7 in July and has held firm or improved for six months in a row. Personal finance expectations for the next year remain strong and there’s a dramatic jump this month in our major purchase sub-measure with shoppers agreeing that now is the ‘right time to buy’. The healthy seven-point rise aligns with strong retail growth figures that reflect the gradual unlocking of the UK high street and release of pent-up demand as Brits hit shops, restaurants and venues.”
GfK said threats from increasing consumer price inflation, Covid-19 and the end of furlough and the Job Retention Scheme could result in the rebound stalling.
Staton added: “Consumers are aware of these pressures judging from the latest fall – from -2 to -5 – in how they view the general economy in the year ahead. What happens across the remaining summer months will frame consumer confidence for the rest of 2021 and beyond.”
