There is growing optimism on personal finances for the coming year despite stubborn inflation, according to research group GfK’s long-running Consumer Confidence Index.
The index increased three points to -24 in June.
Three measures were up, one was down and one was unchanged in comparison to last month.
Joe Staton, client strategy director, GfK, said: “Despite the fierce economic headwinds of the cost-of-living crisis, double-digit grocery price increases, and the mortgage squeeze severely impacting both homeowners and renters alike, the UK Consumer Confidence Index has improved by another three points in June, the fifth monthly improvement in a row.”
He said the most telling finding was consumers’ expectations on how they see their personal financial situation in the coming year – money going in and out of their bank accounts – which showed a healthy seven-point increase.
The index measuring changes in personal finances during the last 12 months was up five points at -15, eight points better than June 2022.
The forecast for personal finances over the next 12 months increased seven points to -1, which is 27 points higher than this time last year.
Mr Staton said: “This is a whisker away from pushing into positive territory, something we have not seen since December 2021, and it’s also the third consecutive monthly increase – all of which is good news for the future.
“Consumers are showing remarkable resilience in the face of inflation that is currently refusing to yield. This is the best showing for the Overall Index Score for the past 17 months and, if consumers continue to weather the current economic storm, then this will provide a firm foundation for getting back to growth.”
The measure for the general economic situation of the country 12 months was unchanged at -54, 11 points higher than in June 2022.
Expectations for the general economic situation over the next 12 months increased by five points to -25; 32 points better than June 2022.
The Major Purchase Index was down one point to -25; 10 points higher than this month last year. The Savings Index was up six points to +25; 16 points higher than this time last year.
• The UK Consumer Confidence Barometer is conducted by GfK. June’s survey was conducted among a sample of 2,000 individuals aged 16+. Quotas are imposed on age, sex, region and social class to ensure the final sample is representative of the UK population. Interviewing was conducted between 1 June and 14 June.
