By Maria Martinez
Consumer confidence in the U.K. edged down in August but remained at pre-pandemic levels, market-research company GfK said Friday.
GfK's consumer-confidence indicator came in at minus 8 in August, down one point from July. Economists polled by The Wall Street Journal had forecast an unchanged reading at minus 7.
"Against a backdrop of cooling headline inflation and soaring house prices, the U.K. consumer confidence index is stable at minus 8 this August," Joe Staton, GfK's client strategy director, said.
The index had posted strong increases since February due to a swift vaccination campaign and gradual reopening of the economy. However, the spread of the more contagious Delta coronavirus variant took its toll on confidence over the past three months.
Among the five measures that make up the consumer-confidence barometer, two were up, two were down, and one stayed the same in August compared with July.
"Expectations for our personal financial situation for the coming 12 months are holding up and this positivity bodes well for the economy going forward this year and next," Mr. Staton said. The index measuring changes in personal finances over the past 12 months is up one point at 0.
The measure for the general economic situation of the country over the past 12 months was up one point in August, while expectations for the general economic situation over the coming 12 months have dipped by one point, the report showed.
The five-point fall in the major purchase index is counterbalanced by the five-point rise in the savings index, suggesting that consumers could be considering switching into saving rather than spending, according to Mr. Staton.
The survey polled around 2,000 individuals between Aug. 2 and Aug. 12.
"With the economy continuing to open up and gross domestic product bouncing back, the overall picture for the economic health of the nation is looking good for the remainder of 2021," Mr. Staton said.
Write to Maria Martinez at maria.martinez@wsj.com
(END) Dow Jones Newswires
08-19-21 1915ET
