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Published
Jun 5, 2020
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UK consumer confidence stays low, but small signs of returning demand

Published
Jun 5, 2020

Lockdowns may be easing around the world, including the UK, but British consumers remain gloomy about the overall prospects for their personal finances and the economy, a new study showed on Friday.


UK consumers remain downbeat



The latest GfK ‘flash’ consumer confidence report showed that, based on data gathered between May 20 and May 26, consumer confidence overall has fallen by two points to -36. Of the five main measures, only one increased and overall confidence levels remained lower than in the last two months. The index was at -34 in both of the regular April and May reports. And an earlier flash report showed it at -33.

So what is it that’s driving the unprecedented gloom? Joe Staton, GfK’s Client Strategy Director, said: “Against a backdrop of falling house prices, soaring jobless claims, and with no sign of a rapid V-shaped bounce-back on the cards, consumers remain pessimistic about the state of their finances and the wider economic picture for the year to come.”

But there is a caveat to all this and that's in the one index measure that increased. It was the Major Purchase Index, which saw a six-point uplift compared to the main May report. Admittedly that was down sharply from the +1 seen in May 2019, but it still suggests a returning interest in spending among some consumers.

“As the lockdown eases, it will be interesting to see just how the consumer appetite for spending returns in a world of socially-distanced shopping and the seismic shift to online retailing – alongside worries of a fresh spike in Covid-19 cases as relaxations increase,” Staton added.

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