// Consumer confidence drops to lowest since records began in 1974
// Sentiment surrounding personal finances for the past year has dropped a point
Consumer confidence has dropped in June, reaching an all-time low of -41 since records began in 1974.
This was 32 points lower than
the same month last year, according to the latest data from GfK.
Sentiment surrounding personal finances for the past year has fallen a point from last month to -23, which was 23 points behind June 2021.
READ MORE: Consumer confidence drops to lowest level since 1974
Consumers also expressed concerns about their personal finances for the year ahead – that measure dropped by three points to -28, which was 39 points lower than the same time last year.
Confidence in the general economic situation dropped as consumers consider the cost of rising inflationary pressures.
Feelings about the previous year’s economic situation dropped two points to -65, while sentiment surrounding the upcoming year also declined by one point to -57.
These were 18 points and 55 points lower than last June respectively.
The major purchase index remained flat at -35, which was 30 points below last year, while the savings index dropped one point to -9.
“With a headline score of -41 for June, the GfK Consumer Confidence Barometer has set a record low for the second successive month,” GfK client strategy director Joe Staton said.
“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.”
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