Slight boost to UK consumer confidence in July

UK consumer confidence rose slightly in July, according to the GfK Consumer Confidence Index.

The index rose by two points, to -11, over the month, with four of its five measures increasing and one remaining the same.

“Pre-Brexit consumers are marginally more bullish this month with improvements in levels of confidence across most measures. Although it’s too soon to judge any impact of a post-Boris bounce, we can report a boost in attitudes to our personal financial situation in the face of low interest rates and day-to-day inflation, a buoyant labour market and growth in real wages,” says GfK client strategy director Joe Staton.

There was a six point increase in the Major Purchase Index, which measures willingness to make a major purchase, which Staton says mirrors ongoing resilience in consumer spending. He notes that consumers have, in general, seen less uncertainty since the Brexit referendum than businesses.

“However, the coming months to the 31 October departure date will test the strength of this confidence. Will consumers greet the Halloween Brexit deadline with hurrahs or howls?” concludes Staton.