Key facts
- British consumer morale rose to -14 in August, a two-year high.
- This figure surpassed economists' expectations of -18.
- Confidence in making major purchases reached its highest point since December 2021.
- Personal financial confidence and economic expectations also improved.
British consumer morale surged to a two-year high in August, with the GfK's Consumer Confidence Index climbing to -14 from -17 in July. This figure surpassed economists' expectations of a fall to -18, adding to a recent trend of stronger-than-expected economic data for the UK.
The survey indicated a significant improvement in households' willingness to make major purchases, with the relevant sub-index reaching its highest level since December 2021. Confidence in personal finances over the next 12 months also hit its highest point since January, while economic expectations reached a two-year peak.
Despite the positive sentiment, Neil Bellamy, consumer insights director at GfK, cautioned that rising inflation and global uncertainties present ongoing challenges for consumers. Other recent surveys from YouGov/Cebr, BRC-Opinium, Barclays, and LSEG/Ipsos have also shown increases in consumer confidence over the past month. The GfK survey, which has been conducted since 1974, polled 2,000 adults between July 30 and August 12.