United Kingdom: Consumer sentiment worsens in June
The GfK consumer confidence indicator registered minus 13 points in June, down from May’s minus 10 points. As a result, the index moved further into negative territory, where it has been since April 2016, highlighting that consumers are broadly pessimistic. Consumer confidence has struggled to gain traction so far this year amid pervasive Brexit uncertainty and political paralysis.
June’s reading was driven by gloomier sentiment regarding personal finances and the general economic situation. Consumers also grew less willing to make major purchases.
According to Joe Staton, Client Strategy Director at GfK “”Another trend to watch, even though it’s not included in the Overall Index Score, is the Savings Index – up for the third month in a row […]. Despite more of us agreeing that “now is a good time to save”, the official savings ratio stands at near historic lows as households must either dip into their savings or go into debt to fund the cost of day-to-day living. This is important because, without the security of a savings buffer, consumers may well be unable to absorb the impact of any downturn a no-deal Brexit might deliver.”