UK consumer confidence rises but inflation pressures may reverse gains

UK consumer confidence reached its highest level in two years in September, according to GfK’s Consumer Confidence Barometer, which climbed to –13 from –14 in August—a one-point improvement. The reading marked the first three consecutive monthly gains since summer 2024, just after the last general election, and exceeded expectations. However, optimism remains fragile, with inflation and energy price pressures threatening to reverse the momentum. The headline score, while up, remains in negative territory, signaling persistent economic caution among consumers.