Overview
- GfK’s consumer confidence index rose to -14 in August, marking a fourth consecutive monthly increase and the strongest reading since August 2024.
- Analysts and GfK’s insights director said the uptick partly reflects growing public faith in Chancellor John Healey and Mayor Andy Burnham as they push a cost‑of‑living agenda.
- Survey detail shows households feel better about their own finances with a personal finances reading of +4 while views on the wider economy remain weak at -23 and willingness to make major purchases hit its highest level since December 2021.
- Risks to the recovery include a rise in inflation to 2.9% and ongoing geopolitical uncertainty in the Middle East, which GfK said could still reverse recent sentiment gains.
- Retail groups have recorded similar improvements and warned that measures in the Budget to cut business and household costs, such as energy bills and business rates, will determine whether consumers actually spend more.