UK consumers remain gloomy

01 July 2011

LONDON: Consumers in the UK remain highly pessimistic about their personal financial circumstances, with knock-on effects regarding purchasing big-ticket items.

Research firm GfK NOP surveyed 2,002 people, and found the overall barometer of popular perceptions fell by four points month on month, to -25 points, in June 2011.

This also constituted a five-point slide annually, the company revealed.

Elsewhere, respondents' expectations concerning their individual financial situation for the coming year stood at -8 points, an even stronger decline on both a monthly and yearly basis.

Assessments of the general economic outlook were more severe again, logging -50 points, after a substantial depreciation in public sentiment.

The index covering the climate for major purchases witnessed greater stability, albeit still at a deeply unfavourable -27 points.

Similarly, upon being asked if "now is a good time to save", participants delivered a rating of -9 points, five points behind June 2010.

"It was almost inevitable that there would be a drop confidence in June following last month's unique, feel-good circumstances of public holidays and the royal wedding," said Nick Moon, managing director, GfK NOP Social Research.

"What will disappoint the government is that the drop is so large - wiping out half of last month's gain and leaving consumer confidence lower than it was at any point in 2010."

"Across the board, confidence is lower than it was this time last year... As we move into the summer, the outlook for the beleaguered high street remains a gloomy one."

Data sourced from GfK NOP; additional content by Warc staff