U.K. Consumers Stay Gloomy With End of Wage Support Approaching

(Bloomberg) -- U.K. consumer confidence remained weak in July as the government prepared to start winding down pandemic wage subsidies next month.

GfK’s survey of households showed sentiment had lifted only slightly from June and was unchanged from a flash reading two weeks ago. While optimism about personal finances improved, the key measure of willingness to make large purchases stayed low.

Restaurants, pubs and more shops started opening this month, but the economy is still far from returning to normal after the worst slump in centuries. The government is supporting pay for more than 9 million workers and has resisted calls to extend the program even as companies say they’ll soon have to shed more staff.

There’s been little to boost the public mood as the cost of the pandemic to the U.K.’s economy is becoming apparent,” said GfK’s Joe Staton. “Amid significant job losses and the end of the furlough scheme, it is perhaps surprising consumer confidence has held steady.”

Consumers nevertheless reported a brighter outlook for their personal finances. A measure of savings also increased.

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