UK consumer confidence rises after summer lift

Consumer confidence has risen sharply in July, helped by warm weather, the World Cup and optimism surrounding the arrival of Prime Minister Andy Burnham.

The closely watched GfK confidence index climbed six points to minus 17, its strongest monthly improvement since November 2023. The figure remains below zero, meaning pessimism still outweighs optimism overall, but households reported brighter expectations for the economy and greater willingness to make major purchases.

Retail sales also rose by 1% in June, beating forecasts. Online promotions and sunny weather helped encourage spending, according to official data.

There are still substantial pressures on household budgets. Energy prices, borrowing costs and inflation remain sources of uncertainty, while wage growth is expected to slow. Confidence can also change quickly when political or international events affect prices.

Even so, the figures offer the new government a modest boost. Stronger sentiment matters because households that feel more secure are more likely to spend, supporting shops, services and the wider economy.

Original reporting: The Independent ↗