UK Consumer Sentiment Inches Off July Post-Brexit Low: GfK

--August GfK Consumer Confidence Index -10 Vs -12 July

     LONDON (MNI) - Consumer sentiment inched higher in August, although sitting

only just above July's -12, a level which equalled the 26-year low set in the

direct aftermath of the UK's vote to leave the European Union. 

     Many key components are lower, or close to, the post-Brexit levels set a

year ago, a GfK survey released Tuesday showed.

     The GfK August Consumer Confidence Index rose to -10 from -12 in July. All

of the five components that make up the headline index were higher on a month

ago readings.  

     This month's report saw households' assessment of the general economic

situation over the past year rise one point to -30, 7 points below last August's

level, while their assessment of the next 12 months bounced 1 point to -27, 5

points shy of the level set a year ago. 

     The Major Purchase Index, measuring consumers' willingness to make a

significant outlay, stood at zero, bouncing back from the -1 recorded in July. 

     The Savings Index, not a component of the headline composite index, rose

one point to +6. 

     Joe Staton, Head of Market Dynamics at GfK, said: "We're seeing an uptick

in August among consumers when reviewing their personal financial situation for

both the past and next 12 months, as well as a slight improvement in views about

the general economic situation of the country as a whole."

     He added that these figures must be seen against the backdrop of better

news on inflation, public finances, jobs and growth prospects "as the UK economy

displays some signs of stability after a volatile start to the year. However,

the Index has a lot of ground to regain to get back to black. So is this month's

rise significant? Or could we simply be witnessing a dead-cat-bounce over the

dog-days of summer?"

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

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

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