Shoppers are more optimistic about money than they have been for two years, according to the latest GfK Consumer Confidence report.
Rising optimism throughout the summer has seen consumer sentiment soar past the low of –25 registered in April after the US-Israeli attack on Iran.
Overall financial confidence improved three points to –14 in August, the highest point in two years, boosted by growing optimism over shoppers’ personal finances.
Shoppers were slightly optimistic about their own financial prospects over the next 12 months, with a score up three points to 4. And more people than at any point since December 2021 felt that now was a good time to make major purchase, as the measure improved five points to –7.
There was similar optimism over the country’s economic prospects for the next 12 months, said GfK consumer insights director Neil Bellamy.
“While still deep in negative territory, this measure is up five points to –23, the best since August 2024, shortly after Keir Starmer took office,” he said.
“Does all this mean that people have greater faith in the new government to increase growth and job opportunities? Can consumers finally see an end to the cost of living crisis? It would be tempting to say yes, but frankly it’s too soon to tell.”
With inflation back on the rise, Bellamy added, and continued uncertainty in the Middle East, there remained many challenges to “test the mettle” of UK consumers.
While four of GfK’s six measures of confidence rose, the continued squeeze on shoppers helped contribute to a five-point fall in consumers’ opinion of their own savings to 22.
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