Consumer confidence sees uplift in August

Consumer confidence seen a recovery in August, according to the latest figures.

The GfK Consumer Confidence Index increased by five points in August to -7. This is 14 points lower than the score of 7 recorded in the same month last year, but is an improvement on the -12 seen this July.

The measure for the general economic situation in the UK during the past 12 months increased by two points to -23, compared with the previous month. Although, this is still 26 points lower than the same period a year ago.

Expectations for the general economic situation in the next 12 months has also improved, increasing 11 points to -22 in August, but is still 25 points lower than a year ago.

The Major Purchase Index – where buyers are asked if now is the right time to make a major purchase – increased nine points to 7, but is 10 points lower than August last year.

Joe Staton, head of market dynamics at GfK, said: “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.”