Primary Consumer Sentiment Index down for second consecutive month

For the second month in a row the latest Thomson Reuters/ Ipsos Primary Consumer Sentiment Index (PCSI) for August shows consumer confidence down slightly by 2 points from July and 3.7 points since June. The August figure stands at 52.2 compared to 54.2 in July.

When looking further into the sub-indices that make up the PCSI, the past month’s decline in consumer confidence was primarily driven by perceptions of the current economic climate (down 3.3 points) and perceptions of the current investment climate, how confident people feel in their ability to invest or save for the future (down 2.9 points), showing a growing sense of scepticism around the state of Britain’s economy. More modest declines are seen in perceptions of future economic expectations (down 1 point) along with outlooks on job security (down 1.2 points).

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Bobby Duffy, managing director of the Ipsos Social Research Institute, said 

“This summer has seen a number of issues that might make Britons sceptical about the health of our economy. The emerge of further detail about where public spending cuts will fall, weaker than expected jobs figures, and ill winds from the Eurozone and Chinese stock market crisis may all be dampening confidence”