Consumer confidence hovers near record low during coronavirus crisis
Consumer confidence continued to teeter on the brink of hitting record lows during the ongoing coronavirus crisis.
Consumer confidence dipped two points to minus 36, just three points above the record low of minus 39 reported in July 2018, as house prices fell and unemployment rose.
However, GfK’s major purchase index rose six points, showing that the demand from shoppers is strong despite the closure of physical stores.
According to GfK research, consumers are more concerns about their financial performance over the last 12 months. That measure dropped by six points.
The general economic situation over the last 12 months also lost five points. The general economic situation over the next 12 months was down three per cent.
GfK’s client strategy director Joe Staton said: “GfK’s third Covid-19 flash report records drops across key measures to minus 36, just three points shy of the historic low of minus 39 in July 2008.
“Against a backdrop of falling house prices, soaring jobless claims, and with no sign of a rapid V-shaped bounce-back on the cards, consumers remain pessimistic about the state of their finances and the wider economic picture for the year to come.
“The only bright spark in the numbers is for the Major Purchase Index with a six-point fillip, pointing to latent demand among shoppers across the UK despite most outlets remaining shuttered.
“As the lockdown eases, it will be interesting to see just how the consumer appetite for spending returns in a world of socially-distanced shopping and the seismic shift to online retailing – alongside worries of a fresh spike in COVID-19 cases as relaxations increase.”