Confidence among British households deteriorated again in June, hitting a record low for the second consecutive quarter and adding to concerns about falling consumer spending amid sluggish economic growth.
GfK’s consumer confidence barometer fell to -41 points in June from -40 points in May, the lowest level since the survey began in 1974, below estimates for a slight rise to -38 points.
The index has been steadily declining for seven consecutive months due to rising inflation, driving consumer confidence to levels previously visible in times of economic downturn.
“Consumer sentiment is now more ominous than in the early stages of the pandemic, following the outcome of the Brexit referendum in 2016 and even after the shock of the global financial crisis in 2008, and now there is talk of an impending recession. “, stressed GfK’s customer strategy director Joe Staton.
Four of the five confidence-building indicators fell in June from the previous month, with the biggest drop in consumers’ short-term outlook for their personal finances.
“With prices rising faster than wages, and the prospect of strikes and rising inflation creating a summer of discomfort, many will be surprised that the index has not fallen further,” taton added.
Source: Capital
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.