MNI: UK June Consumer Confidence Retreats to April's Low: GfK

--UK June GfK Consumer Confidence Index -9 Vs -7 May

     LONDON (MNI) - June's UK consumer confidence wiped out all the gains seen

in May, reverting back to the -9 reported in April, the latest survey by GfK

found.

     --UKCONFIDENCE DOWN PRE-BREXIT

     The fall in June's GfK Consumer Confidence Index (CCI) was driven by falls

across every measure, with the general economic situation leading the way lower.

Both the general economic situation over the last twelve months and the next

twelve months shrunk four points from May to -28 and -25, respectively. 

     Perceptions of households' prospective personal finances fell less than the

general economic situation measures, but still shows a real fall in confidence.

The personal financial situation measure over the next twelve months fell two

points from May to +6, whereas the financial situation over the past twelve

months was flat at 0, down a point from May. 

     --ECONOMIC PESSISM

     According to Joe Staton, Client Strategy Director at GfK, UK confidence is

being held back by households' anxiety over general economic picture, both past

and prospective. 

     "Consumers are yet again feeling less upbeat as is evident from the

two-point drop in the Overall Index Score this month. We are reporting falls

across all key measures. Scores on personal finance are down but there is a more

marked deterioration in our levels of optimism about the general state of the

economy," said Staton. 

     --MAJOR PURCHASES WEAK

     The major purchase indicator, measuring households' willingness to purchase

discretionary or durable items continued to move downwards, falling one point to

0. 

     "Meanwhile, with Britain's hard-pressed retail sector very much in the

news, there is little comfort in the one-point drop to zero in the Major

Purchases Index. Shoppers are holding on to their cash and consumers in general

seem set on their path of self-imposed austerity," Staton added. 

     The UK Consumer Confidence Survey from GfK was conducted between May 1 and

May 15 on behalf of the European Commission.

--MNI London Bureau; +44 203-586-2226; email: jamie.satchithanantham@marketnews.com

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

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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