UK: August sees continued drop in consumer confidence

LONDON, UK: The index has fallen for the third month in a row and consumer confidence in the UK is down to -31, where it was in April this year. Previously, it had only been as low on 2 other occasions: during the downturn of 2008 and 2009 and in the turbulent early months of 1990. On both occasions, the decline in consumer confidence mirrored a slide into recession.

Nick Moon, managing director of GfK NOP Social Research, comments: "With an increasing number of indicators suggesting the economy is either stagnating or returning to recession, the continuing loss of consumer confidence is a major worry for the government. However, while there has been a 4-point drop in consumers' general view of the economic situation over the next 12 months, there has been a small improvement in how they view their own financial situations, suggesting that people are adapting to the austere economic climate."

UK Consumer Confidence Measures - August 2011

The overall index score this month has decreased by 1 point to -31, 13 points lower than this time last year. Two of the measures saw small increases, 2 stayed at the same level as July 2011 and 1 measure decreased this month. The annual moving average drops 1 point to -25.

Measure	August 2011	July 2011	August 2010
Overall Index Score	-31	-30	-18
Personal Financial situation over last 12 months	-24	-25	-12
Personal Financial situation over next 12 months	-11	-12	-3
General Economic situation over last 12 months	-57	-57	-43
General Economic situation over next 12 months	-31	-27	-14
Climate for major purchases	-31	-31	-20

Personal financial situation

The index measuring changes in personal finances during the last 12 months has increased 1 point this month to -24; this is 12 points lower than this time last year.

The forecast for personal finances over the next 12 months has increased by 1 point this month to -11; this is 8 points lower than August '10.

General economic situation

The measure for the general economic situation of the country during the last 12 months has stayed the same this month at -57; 14 points lower than this time last year.

An expectation for the general economic situation over the next 12 months has decreased by 4 points to -31, 17 points lower than August '10.

Climate for major purchases

The major purchases measure has stayed the same this month, at -31, which is 11 points lower than this time last year.

Savings index

The 'now is a good time to save' Index, has decreased 3 points to -10, which is 4 points lower than August '10.

About the survey

The UK Consumer Confidence Survey from GfK NOP was conducted amongst a sample of 2000 individuals aged 16+ on behalf of the European Commission. Quotas are imposed on age, sex, region and social class to ensure the final sample is representative of the UK population.
Interviewing was carried out 5-14 August 2011. The figures contained within the Consumer Confidence Barometer have an estimated margin of error of +/-2%
Results for the Consumer Confidence Barometer are normally available on the last working day of each month at 00.01am; the release date for September is Friday 30 September 2011.
This study has been running since 1974. Back data is available from 1996.

About GfK NOP

GfK NOP Ltd is part of the GfK Group and a leading market research agency in the UK and internationally. It is a renowned supplier of market information and insight, offering sector specialists and best-in-field research for qualitative, quantitative, ethnographic, omnibus and online research services.

Research carried out by GfK NOP on behalf of the European Commission