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Consumer confidence drops

Consumer confidence in the UK dropped by three points in June, signalling a “turbulent time” ahead for retailers.

The overall GfK Consumer Confidence Index score fell to -13 in June, and is expected to decline further over the coming months.

All five measures used, including consumers’ confidence in their personal financial situation and the general economic situation, decreased.

Joe Staton, client strategy director at GfK, said: “While UK consumers remain concerned about the wider economy, over which the woman or man in the street has no control, of greater worry are the falls in the measures for personal finance.

”These better reflect our hopes and fears for our everyday financial futures and this, coupled with a decline in the major purchase index, could point to a turbulent time for the economy over the summer months.

“Another trend to watch, even though it’s not included in the overall index score, is the savings index – up for the third month in a row at +19. Despite more of us agreeing that ’now is a good time to save’, the official savings ratio (the percentage of disposable income being saved) stands at near historic lows as households must either dip into their savings or go into debt to fund the cost of day-to-day living.

“This is important because, without the security of a savings buffer, consumers may well be unable to absorb the impact of any downturn a no-deal Brexit might deliver.”

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