25 July 2021

July has seen UK consumer confidence rise for the six month in a row according to the respected GfK barometer.

In a positive statement for the retail sector, Joe Staton, client strategy director at GfK, said: “Consumer confidence edged ahead of its March 2020 pre-lockdown headline score by two points to -7 in July. This means it has now held firm or improved for six months in a row. Personal finance expectations for the next 12 months remain strong and there’s a dramatic jump this month in our major purchase sub-measure with shoppers agreeing that now is the ‘right time to buy’.

“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.

“Consumers are aware of these pressures, judging by the latest fall from -2 to -5 in their view of the general economy in the coming 12 months. What happens across the remaining summer months will frame consumer confidence for the rest of 2021 and beyond.”

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Tags: Consumer confidence