According to their latest consumer survey of around 2,000 citizens, market analysts at GfK see the U.K. Consumer Confidence Index at pre-pandemic levels of -8 in August, against a backdrop of cooling headline inflation and rising house prices.
Expectations regarding personal financial situations over the next 12 months continue, and this positive assessment bodes well for the economy this year and next. GfK points out that the five-point drop in the major purchases index in August (which is still 22 points higher than in August 2020) is offset by the five-point rise in the savings index, suggesting that consumers may be considering a switch to saving rather than spending. The figures show that U.K. consumers have increased their savings to record levels during Covid. The index, which measures the performance of personal finances over the past 12 months, rose one point to 0, five points higher than in August 2020. The forecast for personal finances over the next 12 months remained the same at +11, up 10 points from this time last year.
The measure of the nation’s overall economic situation over the past 12 months is up one point to -42; this is 20 points higher than in August 2020.
As the economy continues to open up and GDP begins to rise again, GfK sees a good overall picture for economic health in the U.K. for the remainder of 2021.
