UK Consumer Confidence improves in August

The long-observed Consumer Confidence Index by GfK has notched a five-point uptick, ascending to -25 in August. Key data from personal financial situations and general economic situations show growth compared to the prior month's assessment, noting a quiet optimism amongst consumers.

Joe Staton, Client Strategy Director at GfK, said: "In the midst of shifting dynamics involving decreasing core inflation, elevated interest rates, and rising average weekly wages, the Consumer Confidence Index has demonstrated a noteworthy resurgence this month, with a commendable five-point enhancement. Although the headline number remains rooted in pessimism at -25, prospects for our personal financial circumstances in the upcoming year are progressively gravitating toward optimism – a pivotal gauge indicating future household finances.”

“A parallel turnaround in our outlook for the broader economic landscape over the next 12 months, coupled with an eight-point surge in major purchase intentions, could potentially cast brighter prospects for retailers entering the autumn season. However, within the backdrop of a still frail financial national sentiment, these glimmers of optimism are a welcomed respite during these trying times for consumers across the UK."

The UK Consumer Confidence Barometer began in 1974 and is under the purview of GfK. The survey for this month encompassed 2,001 respondents aged 16 and above. Interviews were conducted between August 1st and August 10th, 2023.