Key facts
- US inflation eased to 3.1% in July.
- Consumer confidence in the UK hit a 21-month high.
- UK consumer spending rose 2% year-on-year in July.
- The Federal Reserve is expected to hold interest rates steady.
US inflation cooled to 3.1% in July, a development that is likely to lead the Federal Reserve to hold interest rates steady. Meanwhile, UK consumer confidence reached its highest level in nearly two years, buoyed by summer spending, the closing stages of the men's football World Cup, and increased domestic holidaying. Barclays data showed UK consumer card spending rose 2% year-on-year in July, with hospitality and leisure sectors up 2.2% and pubs seeing a 10% increase in transactions. Consumer confidence in the UK economy climbed to 30%, a six-percentage-point improvement on June and the highest since September 2022. However, overall retail sales growth slowed, with non-food sales declining, as consumers prioritized smaller indulgences over big-ticket items. New Prime Minister Andy Burnham has begun a tour addressing the cost of living crisis.