U.K. June Consumer Confidence Drops as GfK Sees Turbulent Summer
Findings indicate the economy could see a rocky time ahead, with a change in prime minister potentially bringing more turmoil.
(Bloomberg) -- U.K. consumer confidence took another dip in June as Britons became more pessimistic about their personal financial situation in the face of Brexit uncertainty.
GfK’s headline confidence measure dropped to minus 13, erasing a slight rebound in May, the firm said in a report Friday. All five components of the index -- encompassing scores for personal finances, general economic optimism and major purchase intentions -- dropped from the previous month.
The findings indicate the economy could see a rocky time ahead, with a change in prime minister potentially bringing more turmoil. Concerns over a no deal Brexit have resurfaced during the leadership race, with both Boris Johnson and Jeremy Hunt saying they’d consider an exit without a transition period.
“While U.K. consumers continue to remain concerned about the wider economy, over which the woman or man in the street has no control, of greater worry are the falls in the measures for personal finance,” said Joe Staton, client strategy director at GfK. “These better reflect our hopes and fears for our everyday financial futures and this, coupled with a decline in the Major Purchase Index, could point to a turbulent time for the economy over the summer months.”
A separate report from Lloyds showed business optimism edged higher in June, but remained well below levels seen in 2018.
To contact the reporter on this story: David Goodman in London at dgoodman28@bloomberg.net
To contact the editors responsible for this story: Paul Gordon at pgordon6@bloomberg.net, Brian Swint, Lucy Meakin
©2019 Bloomberg L.P.