MNI: UK Consumer Confidence Firms In August: GfK

--UK August GfK Consumer Confidence Index -7 Vs -10 July

By Jai Lakhani

     LONDON (MNI) - UK consumer confidence recovered from June and July's

declines to return to May's level of -7, the latest GfK survey found.

     --UK CONFIDENCE DOWN PRE-BREXIT

     The rise in August's Gfk Consumer Confidence Index was driven by four of

the five components, with only the 'general economic situation over the next 12

months' measure remaining unchanged, at -26. The 'Major Purchase' Index rose by

eight points to +6, its first positive reading since May.

     Perceptions of households' personal finances over the last twelve months

were up three points to +4, whilst the sub-index measuring confidence regarding

personal finances over the next 12 months gained one point to +8. This likely

reflects the rise in earnings over the last 12 months, which appears to be

continuing steadily.

     --CONSUMERS "WAIT-AND-SEE" ON BREXIT?

     According to Joe Staton, Client Strategy Director at GfK, UK consumers may

be ignoring Brexit concerns for now. "Consumers are no doubt aware of the

incessant Brexit noise ... But are consumers putting their hands over their ears

and quietly saying 'Let's just wait-and-see'? We are just months away from the

Brexit crunch but there is no sign (yet) of any crash in consumer confidence,"

said Staton.

     --MAJOR PURCHASES STRONG

     The major purchase indicator, measuring consumers' perceptions of when is a

good time to buy items such as furniture and electrical goods, surged by eight

points to +6, significantly above the 12-month rolling average of +0.62.

However, the limitation of this measure is that it does not ask individuals if

they themselves would make major purchases now, but rather whether it is a good

time for UK consumers in general to do so.

     The UK Consumer Confidence Survey was conducted by GfK between August 1 and

August 15 on behalf of the European Commission.

--MNI London Bureau; +44 203 865 3828; email: jai.lakhani@marketnews.com

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