UK consumer confidence edges up in June, but inflation fears persist

Consumers’ outlook on their personal financial situation held steady. Confidence regarding the past 12 months remained unchanged at -7, while expectations for the next 12 months stood at +2, showing no movement since May, as per the latest GfK Consumer Confidence Barometer powered by the Nuremberg Institute for Market Decisions (NIM).

“This is driven by improvements in how consumers see the general economy, with scores up three points (looking at last year) and up by five points (looking at the next 12 months). Consumers have been resolute in their views on their wallets with June’s personal financial situation scores (past and future) unchanged from May,” said Neil Bellamy, consumer insights director at GfK, an NIQ Company.

“Yet confidence is still fragile because the dark shadow of inflation is a day-to-day challenge for so many of us. With petrol prices set to rise in the coming weeks following the escalation of the conflict in the Middle East, and with ongoing uncertainty as to the full impact of tariffs, there is still much that could negatively impact consumers. With so much volatility, now is certainly not the time to hope for the proverbial ‘light at the end of the tunnel,” added Bellamy.

Public perception of the general economic situation showed clearer signs of improvement. The view of the past 12 months improved to -43 (up 3 points), while expectations for the coming year rose to -28 (up 5 points). However, both figures remain well below June 2024 levels of -32 and -11, respectively.

The Major Purchase Index, which gauges consumers’ willingness to make large purchases, held steady at -16. Although better than April’s -19, it remains weaker than June 2024’s -23. Meanwhile, the savings index slipped by 1 point to 27, continuing its decline from April's 30, though still higher than the 22 recorded a year ago.

The data suggest that while confidence is inching upwards, persistent concerns over inflation, geopolitical tensions, and trade-related uncertainties continue to weigh heavily on UK households.

ALCHEMPro News Desk (SG)