Post-election jitters have worn off, but consumer confidence stays low

Consumer confidence in the UK has increased slightly on June's level, according to the latest consumer confidence index from YouGov and the Centre for Economics and Business Research.

But July’s index of 107.3, following 107.1 in June, marks the first time in four years the index has stayed below 108 for a second consecutive month.

The index collects data every day and incorporates eight measures of confidence around household finances, property prices, job security and business activity. Any score above 100 represents consumers being more confident that unconfident.

Stephen Harmston, head of YouGov Reports, said that while the upheaval caused by the general election campaign had worn off, consumers were continuing to see an increase in the cost of living.

"Consumers have absorbed the turbulence of the past couple of months and things have settled down," he said. "It is notable, though, that consumer confidence remains below the level we saw before the election and is still significantly lower than before the EU referendum.

"As the slow puncture in household finances continues it is clear that people are feeling the effects of inflation in their day-to-day lives."

Nina Skero, head of macroeconomics at Cebr, added: "Last week’s relatively weak GDP figures point to the UK economy facing a tough test over the next year and these figures suggest that while the shock of the election result may have been absorbed, a lot of uncertainty remains."

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