UK consumer confidence improved in August as four measures were up during the month.
According to the latest GfK Consumer Confidence Index, overall figures increased by two points to -17 in August. Four measures were up and one was down in comparison to last month’s announcement.
The Major Purchase Index, which includes big ticket items such as furniture, is up two points at -13; this is the same as this month last year.
The measure for the general economic situation of the country during the last 12 months is up two points to -42; this is seven points worse than in August 2024.
The index measuring changes in personal finances during the last year is up three points at -4; this is three points better than August 2024.
The Savings Index has dropped four points to +30 in August; this is three points lower than this time last year.
Neil Bellamy, Consumer Insights Director at GfK, an NIQ Company, says: “The biggest changes in August are in confidence in personal finances, with the scores looking back and ahead a year each up by three points. This is likely due to the Bank of England’s August 7th cut in interest rates, delivering the lowest cost of borrowing for more than two years.
“The improved sentiment on personal finances is welcome, but there are many clouds on the horizon in the form of inflation – the highest since January 2024 – and rising unemployment. There’s no shortage of speculation, too, about what the autumn Budget will bring in terms of tax rises.
“While August’s Overall Index Score of -17 is the best this year, consumer confidence continues to move in a very narrow band, and there’s no sense that it is about to break out into fresher, more optimistic territory.
“The UK’s consumers are still in wait-and-see mode, and any surprises could result in sudden and sharp changes in sentiment.”
