Consumer confidence up in June amid ‘dark shadow’ of inflation and war

Consumer confidence improved marginally in June despite the “dark shadow” of inflation and turmoil in the Middle East, figures show.

GfK’s long-running Consumer Confidence Index rose two points but remains firmly in negative territory at minus 18.

Confidence in the general economy over the coming year rose five points, driving the improvement, but still remains at minus 28 – 17 points worse than last June.

The forecast for personal finances over the next 12 months remained unchanged at positive two – two points down on this time last year.

The major purchase index, an indicator of confidence in buying big ticket items, also remained unchanged at minus 16, seven points better than last June.

Neil Bellamy, consumer insights director at GfK, said: “Consumers have been resolute in their views on their wallets, with June’s personal financial situation scores – past and future – unchanged from May.

“Yet confidence is still fragile because the dark shadow of inflation is a day-to-day challenge for so many of us.

“With petrol prices set to rise in the coming weeks following the escalation of the conflict in the Middle East, and with ongoing uncertainty as to the full impact of tariffs, there is still much that could negatively impact consumers.

“With so much volatility, now is certainly not the time to hope for the proverbial ‘light at the end of the tunnel’.”