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Danny McCance 28 Jun 2019 11:22am

UK consumer confidence slumps back to “new normal”

Consumer confidence in the UK slipped by three points in June following a more optimistic May, as consumers show concerns about personal finance and the wider economy

The GfK consumer confidence index dropped to -13 in June, a three-point decrease since May and a four-point drop year-on-year.

After a bump in sentiment last month, consumer confidence returned to what GfK client strategy director Joe Staton considered might be its “new normal” for the year.

Confidence dropped from -7 in August last year to -13 in November – the point at which it has largely remained since, barring last month’s uptick.

“While UK consumers continue to remain concerned about the wider economy, over which the woman or man in the street has no control, of greater worry are the falls in the measures for personal finance,” said Staton.

He warned that this, coupled with the major purchase index scores, may indicate “a turbulent time for the economy over the summer months”.

Yesterday, Big Four firm KPMG downgraded its annual UK GDP forecast by 0.2% to 1.4% for 2019 amid “ongoing Brexit uncertainty”.

The outlook was even gloomier for rival firm PwC, which suggested GDP would fall from 0.5% for Q1 to zero in Q2 and remain “volatile” throughout the rest of 2019.

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