Global economic woes dent strong UK consumer sentiment: GfK
[LONDON] British consumer morale eased in July as concerns about Greece and the global economy weighed on Britons' outlook for the economic situation over the next year, a survey showed on Friday.
Household spending, a key driver of the country's strong economic recovery, was weak at the beginning of 2015. But rising wages and zero inflation has increased consumers' disposable income, boosting morale to its highest in over 15 years in June.
The GfK monthly sentiment index fell to +4 in July after jumping to +7 last month - the highest since January 2000. "In part, driven by anxiety over the potential Grexit melt-down and global uncertainty, consumers are feeling less secure about wider economic prospects for the country as a whole this month," Joe Staton, an executive at market research company GfK said.
Britons were slightly more upbeat about their financial situation over the next year but were more pessimistic about the general economic situation over the same timeframe.
The index measuring the latter fell to -1 in July from +4 in June - its lowest since January.
Greece came close to a complete financial collapse last month, while the Chinese stock market recently plunged on concerns about the country's long-term growth prospects.
Britain's economic growth recovered in the second quarter but the strength of the pound hurt manufacturers. "Overall, despite this month's dip, the underlying message is strong," said Mr Staton.
REUTERS
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Consumer & Healthcare
Cordlife requests trading halt after dropping 15.2% to all-time low, pending announcement
Gazelle Ventures makes cash offer for No Signboard shares at S$0.0021 apiece
Marina Bay Sands Q1 profit surges 51.5% to US$597 million on tourism boom
Swiss watch exports plunge as China and Hong Kong demand dries up
Cutting the cord?: Events leading up to Cordlife’s MOH suspension and arrests of its directors, ex-group CEO
Billionaires selling cheap stuff get richer from inflation pain