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British consumer morale steadies in July but at low levels - YouGov/Cebr

Published 01/08/2017, 00:08
Updated 01/08/2017, 00:10
© Reuters. FILE PHOTO: Shoppers walk past a sale sign in central London

By Emma Rumney

LONDON(Reuters) - British consumer confidence steadied last month after falling sharply in the aftermath of June's inconclusive national election, but it still marked the weakest two months in four years, a survey published on Monday showed.

Pollster YouGov and the Centre for Economics and Business Research (Cebr) consultancy said its consumer confidence index crept back up to 107.3 in July from 107.1 in June.

But morale overall remained muted as households have been squeezed by rising inflation that followed last year's Brexit vote, as well as subdued wage growth.

July's reading marked the first time the index has been below 108 for two consecutive months since mid-2013, when Britain's recovery from the financial crisis began in earnest.

Respondents reported a decline in their household finances for the fourth month in a row, bringing that index to its lowest level since December 2014.

Nina Skero, head of macroeconomics at Cebr, said this was to be expected given recent inflationary pressures,

"What could be as troubling for many consumers over the coming year is the cooling off of property market expectations over the next 12 months - if house prices fall once again then tricky economic conditions would get even more difficult," she added.

On Monday, Bank of England lending data showed mortgage approvals fell to a nine-month low in June. House price data from mortgage lender Nationwide are due at 0600 GMT.

YouGov/Cebr's gauges for job security and expectations for household finances for the next year helped to boost the index slightly overall.

© Reuters. FILE PHOTO: Shoppers walk past a sale sign in central London

Another measure of consumer confidence from market research firm GfK fell to a one-year low in July - data which, alongside weak growth figures, is likely to further deter Bank of England policymakers from raising interest rates on Thursday.

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