Consumer confidence dipped in August 2024 as optimism around household finances fell

• Overall index falls (-0.4)
• Outlook for household finances (-3.5) sees the biggest decline
• Business activity deteriorates for retrospective (-2.1) and forward-looking metrics (-1.1)
• Confidence in house prices over the past 30 days (1.2) and for the next 12 months (+2.3) rises
• Job security a mixed bag as outlook improves (+2.1) but retrospective measures fall (-1.6)

Consumer confidence slightly declined in August 2024, according to the latest data from YouGov and the Centre for Economics and Business Research (Cebr). The index fell from 111.3 to 110.9 (-0.4) largely due to falling confidence in household finances and business activity.

YouGov collects consumer confidence data every day, conducting over 6,000 interviews a month. Respondents answer questions about household finances, property prices, job security, and business activity, capturing their views on the past 30 days and on their forecast for the coming 12 months.

After improvements in July, August 2024 saw retrospective household finance measures drop from 93.1 to 92.7 (-0.4), while outlook slumped from 100.9 to 97.4 (-3.5): the largest monthly decline since July 2023 (-4.7). The latest ONS data suggests that the economy has been struggling over the past couple of months; have consumers been feeling the pinch?

The other major contributor to a gloomy August were business activity indices. Retrospective measures fell from 111.5 to 109.4 (-2.1), while measures for the year ahead slumped from 126.7 to 125.6 (-1.1). As with household finances, the aforementioned pessimistic economic picture may be contributing to growing negativity among workers.

Speaking of workers, job security was something of a mixed bag in August. While scores for the past 30 days fell from 98.3 to 96.7 (-1.6), outlook rose from 116.3 to 118.4 (+2.1).

In an otherwise dour month, the mood among homeowners only improved. Scores for the past 30 days improved from 114.3 to 115.5 (+1.2), while scores for the next 12 months rose from 128.9 to 131.2 (+2.3). Recent headlines have indicated that UK house prices have risen for the first time in two years.