Consumer confidence decreased one point to -41 in June, setting a new record low, according to GfK’s long-running Consumer Confidence Index.
The research shows that four measures of consumer confidence were down in comparison to the 20 May announcement, while the major purchase index was flat.
Economists polled by Reuters had expected the index to hold at -40.
Joe Staton, Client Strategy Director of GfK, 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.
“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 that consumers will not hesitate to retrench and tighten their purse strings when the going gets tough.”
The index is based on a survey of a nationally representative sample of 2,002 individuals aged 16 or older carried out between 1 June and 14 June 2022.
