Despite gloomy August weather consumers looking on the bright side of life

 

‘Always look on the bright side of life’ sums up the remarkable turnaround in optimism this month that boosted the headline GfK NOP / European Commission Consumer Confidence Barometer in August.

 

Following five successive monthly declines, confidence rose 4 points in August to –18, its highest score since May. The main driver behind the rise is an 11 point rise in optimism about the economic situation. People also felt that the economy had improved compared to 12 months ago. Both measures of household finances also rose in the month – the measure of expected households finances up 3 points on the month to –3 – and the backward looking measure, up 2 points to –12.

 

Despite the strong rise in optimism – driven by a sharp reversal of the surge of expected redundancies in July – the spending climate sub-index measure fell back 4 points to –20. In July it improved 8 points on the back of summer high street sales. The spending intentions measure on household goods picked up slightly in August.

 

Regionally, confidence picked up strongly in the South – following a big drop in July – and in the North. Confidence continues to be weaker outside of England – a likely result of the changed political landscape.

 

A full analysis of the mood of consumers is found in the August Consumer Confidence Monitor covering personal / household finances, general economic situation, spending and saving, inflation and jobs. We also publish a high earners version, and specially tailored reports can be produced covering regions and demographics.

 

Details:  Contact – John Gilbert - j.gilbert@jgfr.co.uk or ring +44 (0) 208 944 7510