By Ian McConnell
Business Editor
UK consumer confidence has dropped even further to a fresh record low, a key survey shows.
Pollster GfK’s closely watched consumer confidence index fell by one point to -41 in June, dropping below what had been a record low in May. Comparable records began in 1974.
GfK client strategy director Joe Staton flagged the prospect of a “summer of discontent” amid strikes and spiralling inflation, and highlighted the fact the mood among consumers was “darker” than in the early stages of the coronavirus pandemic in the first half of 2020 and at any stage during the global financial crisis.
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Annual UK consumer prices index inflation has surged to 9.1 per cent – its highest since 1982 – from 0.4% in February last year.
Mr Staton said: “With a headline score of -41 for June, the GfK consumer confidence barometer has set a record low for the second successive month. The four scores on our personal finances and the wider UK economic picture have all dropped and our measure on major purchase intentions is flat. With prices rising faster than wages, and the prospect of strikes and spiralling inflation causing a summer of discontent, many will be surprised that the index has not dropped further.”
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He added: “The consumer mood is currently darker than in the early stages of the Covid pandemic, the result of the 2016 Brexit referendum, and even the shock of the 2008 global financial crisis, and now there’s talk of a looming recession. One thing is for sure, Britain faces a stark new economic reality and history shows consumers will not hesitate to retrench and tighten their purse strings when the going gets tough.”
GfK’s measure for the general economic situation of the country during the last 12 months is down two points from May at -65 this month. This is 18 points lower than in June 2021. Expectations for the general economic situation over the coming 12 months have dropped by one point since May to -57. This is 55 points lower than last June.
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