Brits carry on shopping as motivation to save collapses.
GfK’s long-running UK Consumer Confidence Index has increased by five points this month to -7. All five measures used to calculate the Index saw increases.
Joe Staton, Head of Market Dynamics at GfK, says:
“We’re reporting some recovery in the Index this month as consumers settle into the new wait-and-see reality of a post-Brexit, pre-exit UK. The uptick in confidence is driven by good news from hard data, the combination of historic low interest rates matched with falling prices and high levels of employment.
“This can be seen in positive growth across all major measures including both our Personal and General Economic situation for the next 12-months. And at +7 points (a jump of nine points from last month), the Major Purchase Index reflects strong retail figures. But more remarkable is the 16-point collapse in the Savings Index (down from +1 last month to -15). We Brits are clearly determined to carry on shopping for today rather than saving for tomorrow.”
UK Consumer Confidence Measures – August 2016
The Overall Index Score has increased five points this month to -7. All measures used to calculate the index score went up.
Personal Finance Situation
The index measuring changes in personal finances during the last 12 months has increased by one point this month to 0; this is three points lower than August 2015.
The forecast for personal finances over the next 12 months has increased by five points this month to +4; this is three points lower than this time last year.
General Economic Situation
The measure for the General Economic Situation of the country during the last 12 months has increased two points this month to -23; this is 26 points lower than August 2015.
Expectations for the General Economic Situation over the next 12 months have increased 11 points to -22 this month; this is 25 points lower than August 2015.
Major Purchase Index
The Major Purchase Index has increased nine points this month to +7; this is ten points lower than this time last year.
Savings Index
The Savings Index is 16 points lower this month at -15; which is 17 points lower than August 2015.
