Consumer Confidence Sees Third Monthly Increase.

 

According to a GfK survey, consumer confidence has increased for the third consecutive month since March, fuelled by growing optimism about the economy.

 

The long-standing GfK Consumer Confidence Index climbed three points in June, continuing its gradual rise from negative territory to reach minus 14.

 

This boost was largely driven by a seven-point improvement in confidence regarding the general economic situation over the past year, bringing it to minus 32.

 

Additionally, expectations for the economy over the coming year rose by six points to minus 11.

 

The Major Purchase Index, which reflects confidence in making significant purchases, also saw an increase of three points, reaching minus 23. This is two points higher than the same time last year.

 

However, the outlook for personal finances over the next 12 months fell by three points to a positive four, which is still five points higher than in June of last year.

 

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.

 

“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.”

 

Despite the persistent cost-of-living challenges, the steady rise in consumer confidence is a positive sign.

 

It suggests that while the overall sentiment remains cautious, there is a growing belief in economic recovery, which is crucial for long-term financial stability and growth.

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