New data has shown that consumer confidence has dipped in July as people remain cautious amid speculation around possible tax increases in the Autumn Budget.
GfK’s Consumer Confidence overall index score has fallen by one point to -19.
While the index measuring expectations for personal finances over the next 12 months remains unchanged at +2, the indicator for the general economic outlook has dropped by one point to -29 – 18 points lower than in July 2024.
Meanwhile, the major purchase index is up one point at -15; this is one point higher than in the same month last year.
Never Miss a Retail Update!Neil Bellamy, consumer insights director at GfK, an NIQ Company, said: “The key measures on personal finances, the economy and purchase intentions are flat in July, and many will conclude that consumers are in a cautious wait-and-see mood.
“But the data suggests that some people may be sensing stormy conditions ahead.
“With speculation growing over possible tax rises in the Autumn Budget, and price pressure contributing not just to higher inflation already but also to the likelihood of worse inflation to come, the news is worrying.”
GfK’s said the seven point jump in its saving index to +34 is significant as it suggests people are anxious about what lies ahead. Bellamy added: “This sub measure is not part of our overall index score, but it does reveal that those people who can put money aside are building contingency funds.”
