Top story
UK consumer confidence fell back once more in June, with all five measures of GfK’s consumer confidence index falling back and pointing to a ’turbulent’ summer.
The overall consumer confidence score fell back to -13 in June having been at -10 in May.
The index measuring people’s views on the UK’s general economic situation of the country during the past 12 months decreased to -32, which if four points lower than June 2018.
Expectations for the general economic situation over the next 12 months have decreased four points to -33 – eight points lower than June 2018.
The index measuring changes in personal finances during the last 12 months has decreased by four points this month to -1, which is one point lower than in June 2018.
The forecast for personal finances over the next 12 months decreased by three points to +2 this month – a fall of four points from the measure in June 2018.
Joe Staton, Client Strategy Director at GfK, says: “While UK consumers continue to 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.”
Morning update
This week’s edition of The Grocer has the story that high street chocolatier Thorntons fell deeper into the red last year amid a continuing decline in sales and store closures during its second year of ownership by Italian confectionery giant Ferrero.
Also in this week’s edition, Manomasa maker It’s All Good has posted another year of double-digit sales growth as profits bounced back ahead of a refinancing exercise and Freed Foods has secured an initial seven-figure private equity investment to fuel growth and help it become the “leading gluten-free snack company”.
See thegrocer.co.uk/finance today for full details.
On the markets this morning, the FTSE 100 has edged up 0.1% to 7,411.2pts in early trading.
Risers so far today include Greene King (GNK), up a further 1.8% to 622.6p after yesterday’s rise, B&M European Value Retail (BME), up 1.7% to 336.2p, Ocado (OCDO), up 1.5% to 1,182.5p and Sainsbury’s (SBRY), up 1.4% to 194.1p.
Fallers so far include Devro (DVO), down 2.1% to 201.6p, PayPoint (PAY), down 1.8% to 1,004p and Majestic Wine (WINE), down 1.1% to 254.3p.
Yesterday in the City
The FTSE 100 ended the day down 0.2% to 7,402.3pts yesterday despite a rise in early trading.
Greene King (GNK) was one of the day’s major risers after revealing a rise in annual sales and core profitability following last summer’s hot weather and World Cup. The brewer ended the day up 5.5% to 611.6p to reverse a falling share price since April.
Other risers included Science in Sport (SIS), up 4.3% to 61p after its AGM yesterday, B&M European Value Retail (BME), up 3.9% to 330.6p, McColl’s (MCLS), up 2.9% to 70p, Nichols (NICL), up 2.7% to 1,735p and Ocado (OCDO), up 2.6% to 1,165.5p.
The day’s fallers included Glanbia (GLB), down 3.1% to €14.22, British American Tobacco (BATS), down 2.1% to 2,750p, Kerry Group (KYGA), down 1.5% to €104.30 and Tate & Lyle (TATE), down 1.4% to 734.2p.
No comments yet