Consumer sentiment in the United Kingdom improved slightly in June 2025, with GfK’s long-running Consumer Confidence Index climbing two points to –18—the metric’s second consecutive monthly gain. Although the headline figure remains firmly negative, the uptick suggests households are becoming cautiously more upbeat about economic prospects.
A closer look at the sub-indices reveals why. Views on the general economy rose on both horizons: up three points to –43 for the past 12 months and up five points to –28 for the year ahead. Personal-finance perceptions, however, were flat at –7 (past 12 months) and +2 (next 12 months). Meanwhile, the Savings Index slipped one point to +27, signalling households may feel less need to build extra cash buffers.
For furniture and other durable-goods suppliers, the most relevant metric is the Major Purchase Index, which stayed unchanged at –16—yet that score is seven points stronger than in June 2024. Neil Bellamy, Consumer Insights Director at GfK, notes that while inflationary pressures and fuel-price risks persist, “headline consumer confidence has improved marginally,” driven largely by brighter expectations for the wider economy.
Even so, GfK warns that confidence remains fragile. Elevated living-costs, potential fuel-price spikes linked to Middle-East instability, and uncertainty over tariff impacts could still squeeze discretionary spending in the months ahead. Retailers therefore face a market where optimism is budding but easily shaken.
What this means for furniture retailers
- Emphasise value & durability: With wallets under scrutiny, messaging that highlights quality over replacement cycles can resonate.
- Promote flexible finance: Stable major-purchase sentiment suggests consumers are willing to buy if instalment plans or zero-interest offers reduce upfront pain.
- Leverage omnichannel speed: Quick delivery and stock transparency can convert tentative interest into confirmed sales while confidence is on the upswing.
By tracking monthly confidence data alongside in-store traffic and online search trends, furniture brands can calibrate promotions and inventory, capturing incremental demand as household sentiment slowly brightens.
