Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
The UK faces a "stark new economic reality" with consumers likely to tighten their purse strings even further as conditions worsen in coming months, Joe Staton, GfK's Client Strategy Director told MNI.
According to Staton, GfK's latest survey shows the mood is now darker than in the early stages of the Covid pandemic, the aftermath of the 2016 Brexit referendum, and even the shock of the 2008 global financial crisis, with growing chatter "of a looming recession".
MORE BAD NEWS
"There is nothing but bad news to focus on. Rising prices, media reports of heightened tension with Russia, a potential next wave of Covid, further energy cost increases in the autumn. The consumer is set for a torrid summer," he said.
"Consumers will not hesitate to retrench and tighten their purse strings when the going gets tough.”
The benchmark Consumer Confidence Barometer hit a record low for the second successive month in June, with the headline number falling to -41 from -40 in May.
FURTHER DECLINES
"With prices rising faster than wages, and the prospect of strikes and spiralling inflation causing a summer of discontent, many will be surprised that the index has not dropped further," Staton said.
However, this month's fairly modest decline could just be a temporary hiatus before a further steep decline, he said.
All four headline numbers on the GFK personal finances and the wider UK economic picture dropped in June, with the measure of major purchase intentions flat. Staton's favourite indicator of confidence, the consumer's Personal Financial outlook for the next 12 months, fell 3 points to a new low -28 and is 39 index points lower than a year ago.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.