2019.06.2723:05:00UTC+00UK GfK Consumer Sentiment Weakens More-Than-Forecast

UK consumer confidence weakened more-than-expected in June as households were more concerned about future economic and personal situation, survey results from GfK showed Friday.

The consumer sentiment index fell to -13 in June from -10 in May. The reading was expected to drop marginally to -11.

All components of the index weakened in June. The index measuring changes in past personal finances decreased by four points to -1.

Likewise, the forecast for personal finances over the next 12 months declined three points to +2 this month.

The measure for the general economic situation over the last 12 months dropped to -32 from -30. At the same time, the expectations for the general economic situation over the coming year fell four points to -33.

The major purchase index slid three points to -2. Meanwhile, the savings index gained three points in June to +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," Joe Staton, Client Strategy Director at GfK, said.

"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."