GfK’s long-running consumer confidence index for June jumped by three points to -24 compared to May, in response to a climate of higher inflation and borrowing costs. Compared to a year ago, the overall index score was more positive when the score was -41.

Looking ahead, there is greater confidence over personal finances for the next year where the index revealed a score of -1, up by seven points when compared to the May survey. And a hugely different outlook to a year ago where the same index score plummeted down to -28.

In terms of personal finances for the past year, the index revealed a score of -15, a five-point rise in contrast to the previous month, and eight points better than a year ago.

The view on the general economic situation for the next year is also more favourable going forward, with the score of -25 on the index better than the -57 for June last year.

As for the “major purchase index” in the survey, there was less confidence in June with a -25 score, down by a point from a month ago but up ten points annually.

Finances looking healthier for next year

Joe Staton, client strategy director, GfK, says: “Despite the fierce economic headwinds of the cost-of-living crisis, double-digit grocery price increases, and the mortgage squeeze severely impacting both homeowners and renters alike, the UK Consumer Confidence Index has improved by another three points in June, the fifth monthly improvement in a row.

“The most telling finding is how we see our personal financial situation in the coming year – the money going in and out of our bank accounts – which shows a healthy seven-point increase.

“This is a whisker away from pushing into positive territory, something we have not seen since December 2021, and it’s also the third consecutive monthly increase – all of which is good news for the future.”

He added: “Consumers are showing remarkable resilience in the face of inflation that is currently refusing to yield. This is the best showing for the Overall Index Score for the past 17 months and, if consumers continue to weather the current economic storm, then this will provide a firm foundation for getting back to growth.”