The financial situation of many has held question marks over the last year and a half due to the impact of Covid-19. With consumer confidence taking a hit for some time, confidence seems to be up again according to the latest GfK Consumer Confidence Index.
Consumers are feeling confident about their personal finances; with a focus shifted from spending to saving in the long term. GFK’s Index Score chart suggested that overall consumer confidence is stable at -8 (August 2021) compared to this time last year at -21.
GfK client strategy director Joe Staton spoke on the slight step forward with consumer confidence.
“We have recorded a tiny step back in consumer confidence this month with a one-point dip to -8 in the overall index score,” he said.
“The key difference in sentiment compared to last month is the sharp increase in the motivation to save, with this sub-measure moving up five points to +25.”
The change in consumer confidence is a complete contrast to how they were feeling last year.
“With the removal of most restrictions across the UK, it’s worth looking back for a reminder of just how gloomy people out on the high street were feeling this time last year,” he says.
GfK’s Confidence Barometer (above) provides an insight into the index scores and how the measures have changed in the last two months, compared to August 2020.
The current state of the economy, as an example, has seen a big change. It was at -42 in August 2020; and now the figure is in a much healthier place at -6. The possibility of making major purchases in August 2020 stood at -25; and now is currently now at -3.
“There’s no doubt that Covid numbers still have the power to deliver surprises as we move forward, but marketers can expect to see the consumer mood improving as time passes. It’s a much easier road ahead now,” Joe Staton added.
“With the economy continuing to open up and GDP bouncing back, the overall picture for the economic health of the nation is looking good for the remainder of 2021. There are compelling reasons here to be cheerful as we begin to put the hardest pandemic months behind us.”
With the steady increase in consumer confidence, this is certainly a reason for marketers to be cheerful.