LONDON (MktNews) - Consumer confidence continued to weaken in August as pessimism grew about the state of the economy, according to the latest monthly survey published by GfK on behalf of the European Commission on Friday.
The GfK consumer confidence index fell to 0 in August from +4 in July, coming under the average of +1 seen over the past year, but still over the 19-year average of -7.
The decrease in confidence spread in August to four of the five main measures contributing to the overall index. In addition, respondents' perception of the general economic situation over the next 12 months fell further.
Expectations for the future of personal finances fell a point in August to +12, a rise of only a point on the year.
The perception of the development of the general economic situation fell 6 points in Auugst to -17, an increase of a point on the year.
Expectations for the future of the general economic situation fell 14 points to -22, a fall of 12 points on the year and the lowest result since October 1998.
The measure gauging the state of personal finances over the past 12 months was the only one that increased, to +8 from +6 in July. GfK noted that this was the highest score for this measure since the series began in 1982.
More respondents expect unemployment to rise as well, with expectations of levels of unemployment over the next 12 months rising 10 points to +22 in August. This is the highest figure in two and a half years.
The measure relating to personal savings fell 6 points to -2 in August, the lowest score since July 1964. Some 18% of respondents thought it a very unfavourable time to save.
The survey also revealed that 38% of those surveyed believed that the cost of living is now 'about the same' or 'lower' than it was twelve months ago, compared to 30% last month.
The mean score for this measure now stands at +44, down 2 points from last month and 20 points below year-earlier levels. This was the lowest score since March 1999. Inflationary expectations were little changed from last month at +66 and down sharply from +84 in June. The measure which gauges whether consumers perceive there to be a benefit in making major purchases (such as white goods) at the present time, eased to +21 in August from +23 in July.