Consumer confidence has reached its highest level for two years despite the economy's challenges, reports GfK, whose long-running Consumer Confidence Index was up three points to -14 in August. Four measures rose compared to last month’s announcement and one fell. The Major Purchase Index increased five points to -7, up six points YoY.
Neil Bellamy, consumer insights director at GfK, an NIQ Company, says: “Consumer sentiment has continued to improve this summer with August’s headline score up three points to -14, its highest level for two years and well ahead of the -25 registered just four months ago in April.
"There is increased optimism looking ahead to the next 12 months for personal finances (up three points to 4) and more people also think now is a good time to make a major purchase (up five points to -7, the highest since December 2021). There is similar optimism on economic prospects over the next 12 months.
"While still deep in negative territory, this measure is up five points to -23, the best since August 2024, shortly after Keir Starmer took office. Does all this mean that people have greater faith in the new Government to increase growth and job opportunities? Can consumers finally see an end to the cost of living crisis?
"It would be tempting to say yes, but frankly it’s too soon to tell. With inflation back on the rise – now at 2.9% and the highest in four months – and with continued uncertainty in the Middle East and elsewhere, there are still many challenges ahead that will test the mettle of UK consumers.”
