UK consumer confidence dips to record low in June - GfK

By

Nigel TAYLOR

Published
Jun 24, 2022

UK consumer confidence fell to a new record low in June as shoppers continue to grapple with a stark new economic reality, latest figures from Gfk’s long-running index show.

Its headline consumer confidence Index fell just one point to -41 this month, but that saw it plumbing new depths for a second consecutive month. Meanwhile, four measures were down in comparison to May, and one was flat.

The index measuring changes in personal finances over the last 12 months fell one point to -23, much worse than June 2021. And the forecast for personal finances over the next 12 months dipped three points to -28, a hefty 39 points lower than this time last year.

The measure for the UK’s general economic situation during the last 12 months is down two points at -65, some 18 points lower than in June 2021. Expectations for the general economic situation over the coming 12 months dropped one point to -57, some 55 points lower than June 2021.

The Major Purchase Index stayed the same in June at -35, still 30 points lower than this month last year, while the Savings Index is down one point this month at +9. That's 12 points lower than this time last year.

Joe Staton, Client Strategy Director at GfK, said: “With prices rising faster than wages, and the prospect of strikes and spiralling inflation causing a summer of discontent, many will be surprised that the index has not dropped further. 

The consumer mood is currently darker than in the early stages of the Covid pandemic, the result of the 2016 Brexit referendum, and even the shock of the 2008 global financial crisis, and now there’s talk of a looming recession.” 

He warned: “One thing is for sure, Britain faces a stark new economic reality and history shows that consumers will not hesitate to retrench and tighten their purse strings when the going gets tough.”