Top story
Confidence in the UK economy has dipped even as consumers feel better about their personal finances, according to a closely watched survey.
GfK’s monthly consumer confidence index for August revealed no change to the overall score at -13, but three measures were up and two were down month on month.
Expectations for the UK’s economy over the next 12 months are down for the first time since February, with this measure registering a four-point decrease to -15, with a three-point drop in how consumers view the economy over the past year as well.
At the same time, there are strong personal financial expectations for the coming year with a three-point uptick in this measure to +6.
“This more positive outlook may be due to a mortgage friendly interest rate cut at the beginning of August – and hopes of more to come,” said GfK client strategy director Joe Staton.
He added that the three-point jump in the major purchase index to -13 was “great news” for retailers, with more shoppers agreeing now is a good time to buy big-ticket items.
“The wider point beyond the contrasts is that all the key numbers this month are significantly more encouraging than 12 and 24 months ago,” Staton said. “But as we move into autumn and winter, how much further will this slow improvement in the mood of the nation run?”
Linda Ellett, UK head of consumer, retail and leisure for KPMG, said consumer confidence was “gradually recovering” thanks to greater inflation stability, the first cut to interest rates since 2020 and political certainty after the general election.
“While there are welcome signs of seasonal summer spending for the retail sector that led to sales growth in July, the upturn was minimal,” she added.
“Household finances remain hugely variable and, overall, there is still little evidence to suggest that gradual increases in consumer confidence is yet to lead to a consistent and significant uplift in discretionary spending.”
Morning update
Nestlé CEO Mark Schneider has stepped down as head of the world’s biggest food company in a surprise announcement, with Laurent Freixe, currently executive vice president and CEO of the Latin America zone, taking over on 1 September.
Schneider said that leading Nestlé for the past eight years had been “an honour”. “I am grateful for what we have achieved, having transformed Nestlé into a future-proofed, innovative and sustainable business.”
For the full story on thegrocer.co.uk, click here.
The FTSE 100 is up 0.2% to 8,306.91pts.
Shares in Nestle slumped 2.8% to CHF 86.92 as markets reacted to the news of the CEO departure.
Early risers in fmcg include Kerry Group, up 3.2% to €91.84, Naked Wines, up 1.5% to 53.1p, and THG, up 61.8p.
Alongside Nestle, other fallers so far are Virgin Wines, down 3.5% to 42p and Hilton Food Group, down 3.3% to 933p.
Yesterday in the City
The FTSE 100 was barely above flat yesterday at 8,290.56pts.
It was a similar story to the rest of the week on the markets for fmcg with no updates to influence share prices.
Cranswick and Tesco were among the day’s winners, up 2.4% to 4,775p 1.9% to 346.2p, while Glanbia and Ocado were in the red, down 3.3% to €15.59 and 1.5% to 357.2p respectively.
No comments yet