U.K. headline consumer confidence index falls again in July

The GfK consumer confidence survey was released today that showed that while the figures from the retail sector implied a marker rebound in consumer spending in the second quarter, consumers continued to be comparatively downbeat. The headline index moved within its recent range, possibly underlining the fact that one-off factors were the main drivers of the stronger spending on the high street.

Figures released today showed no rebound in July with the headline index falling to -10 from -9. Consumers’ assessment of their personal financial situation and general economic conditions was little changed. But the index of the climate for major purchases eased a bit, while saving intentions rose higher.

“So, while Q2 GDP figures are likely to show strong private consumption growth, we do not expect that this momentum will be sustained, in particular given that wage growth in real terms remains weak”, stated Daiwa Capital Market Research in a report.

At 21:00 GMT the FxWirePro's Hourly Strength Index of British Pound was slightly bearish at -62.2123, while the FxWirePro's Hourly Strength Index of US Dollar was neutral at -25.3194. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex