United Kingdom: Consumer confidence rises to pre-pandemic level in July
Consumer confidence came in at minus 7.0 in July, up from June’s minus 9.0. July’s result marked the strongest sentiment since February 2020, just before the onset of the pandemic. This was mainly driven by an increased willingness to make major purchases. Despite the rosier overall outlook, consumers’ views of the general economy over the next 12 months were colored with greater pessimism.
Regarding July’s reading, Joe Staton, GfK’s client strategy director, stated:
“The healthy seven-point rise in the major purchase measure aligns with strong retail growth figures that reflect the gradual unlocking of the UK high street and release of pent-up demand as Brits hit shops, restaurants and venues. However, threats from increasing consumer price inflation, rising Covid infection figures, and the looming end of furlough and the Job Retention Scheme could put the brakes on this rebound.”