UK consumer confidence improved to a two-year high in August as GfK’s headline index climbed to -14 from -17 in July, according to data released on Friday.
The increase exceeded economist expectations, with a Reuters poll forecasting a decline to -18. Four of the five sub-indexes tracked by GfK rose during the month, including the gauge measuring confidence in making major purchases, which reached its highest level since December 2021.
Personal financial confidence for the next 12 months also strengthened to its best reading since January, while economic expectations rose to a two-year high. The survey, conducted by GfK among 2,000 adults between July 30 and August 12, marks the latest sign of cautious optimism among households despite persistent cost-of-living pressures.
Neil Bellamy, Consumer Insights Director at GfK, noted that while the improvement is encouraging, risks remain. "With inflation back on the rise and continued uncertainty in the Middle East and elsewhere, there are still many challenges ahead that will test the mettle of UK consumers," he said.
The data follows other recent indicators showing tentative signs of stabilization in UK household sentiment. YouGov/Cebr, BRC-Opinium, Barclays, and LSEG/Ipsos surveys have all recorded month-on-month increases in consumer metrics over the past four weeks. GfK’s index has been tracked since 1974, providing a long-term benchmark for UK consumer behavior.
