Consumer confidence increases again, fuelled by growing optimism about economy

21 June 2024 , 07:33

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Consumer confidence has seen a third consecutive monthly rise since March, (Image: PA Wire/PA Images)

Consumer confidence has seen a third consecutive monthly rise since March, fuelled by growing optimism about the economy, according to a survey.

GfK's long-standing Consumer Confidence Index climbed three points in June, slowly emerging from negative territory to stand at minus 14. This increase was propelled by a seven-point boost in confidence regarding the general economic situation over the past 12 months to minus 32, and a six-point surge in expectations for the economy in the coming year to minus 11.

The Major Purchase Index, which gauges confidence in buying big-ticket items, rose three points to minus 23, two points higher than this time last year. However, the forecast for personal finances over the next 12 months has dipped three points to a positive four, which is five points higher than last June.

Joe Staton, client strategy director at GfK, commented: "Once again we have an improved reading for the overall index score with June showing a three-point improvement bolstered by consumers' more sympathetic view of the economy for the last year and the 12 months to come."

"While June's reading of minus 14 is the third month in a row that confidence has increased, the headline score remains negative owing to the difficulties so many have experienced as the unrelenting cost-of-living crisis batters household budgets."

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"Nevertheless, consumer confidence continues its robust long-term upward trend this month, and has recovered significantly since the record low of minus 49 reached in September 2022. Consumers like financial certainty, and this has to be the cornerstone if we are to see confidence break out into positive territory."

Lawrence Matheson