All five measures were up in comparison to last month’s announcement, bringing the August score to -25. Consumers show renewed resilience as all measures reversed the drop seen in July.
The five measures the index looks at are: personal finance situation over last 12 months, personal finance situation over next 12 months, general economic situation over last 12 months, general economic situation over next 12 months, and the major purchase index.
The index measuring changes in personal finances during the past year is up five points at -15; this is 10 points better than August 2022. The forecast for personal finances over the next 12 months increased four points to -3, which is 28 points higher than this time last year.
The measure for the general economic situation of the country during the past 12 months is up six points at -52; this is 16 points higher than in August 2022. Expectations for the general economic situation over the next 12 months have increased by three points to -30; this is 30 points better than August 2022.
The Major Purchase Index is up eight points to -24; this is 14 points higher than this month last year.
‘Financial pulse weak’ but signs of optimism emerge
Joe Staton, GfK client strategy director, said: “Against a backdrop of falling core inflation, higher interest rates and rising average weekly earnings, the Consumer Confidence Index has regained momentum this month with a welcome five-point improvement.
“Although the headline figure remains strongly negative at -25, hopes for our personal financial situation for the coming year are heading back towards positive territory, a metric that is key to indicating the future financial position of households.
“This renewed optimism can also be seen in the similar turnaround for our view on the general economic outlook for the next 12 months, and the eight-point advance in major purchase intentions is potentially better news for retailers as we move into autumn. However, while the financial pulse of the nation is still weak, these signs of optimism are welcome during this challenging time for consumers across the UK.”
