Consumer confidence fell in July

Confidence among UK consumers weakened slightly this month, amid speculation that the government may announce further tax rises in the autumn Budget, GfK’s consumer confidence index has found.

The consumer confidence index which measures how people view their personal finances and broader economic outlook, dropped by one point in July to -19, which is below the long-run average of -10.

The savings index, which measures whether consumers feel it is a good time to save based on the economic environment, increased seven points to the highest level since November 2007, suggesting broader anxiety about the direction of the economy.

Neil Bellamy, Consumer Insights Director at GfK, 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.”