UK consumer confidence sees largest monthly jump in nearly three years, data firm reports
10 reported
Consumer confidence in the UK rose in July by its largest margin in nearly three years, according to data company GfK. The firm attributed the increase to what it called a “Burnham bounce” following Andy Burnham’s byelection victory, a strong performance by the England men’s football team at the World Cup, and sunny weather. The overall GfK index score increased by six points to -17 in July, the highest level since January and the biggest rise since November 2023. Consumers’ outlook for the economy over the next year improved by eight points, and their view of the economy’s performance over the previous year improved by 10 points. The prospect of an end to the conflict in the Middle East was also cited as a reason for optimism. However, the outlook for consumers’ personal finances rose by only two points, and GfK’s consumer insights director cautioned that index scores remain well below levels seen before the 2016 Brexit vote.
What’s reported
Consumer confidence in the UK jumped in July by its biggest margin for nearly three years, according to GfK.
GfK cited a “Burnham bounce,” a strong England World Cup run, and sunny weather as factors.
Andy Burnham’s byelection victory on 18 June put him in position to take over from Keir Starmer.
The overall GfK index score increased by six points to -17 in July, the highest since January and the biggest rise since November 2023.
Consumers’ outlook for the economy over the next year improved by eight points; their view of the previous year improved by 10 points.
The outlook for consumers’ personal finances rose by just two points.
Neil Bellamy, GfK consumer insights director, said July delivered “a wave of optimism.”
Bellamy cautioned that index scores were still well below levels seen 10 years ago, before the 2016 Brexit vote.
The article notes that Burnham’s plans could be undermined by recent US conflict with Iran, which sent Brent crude to $100 per barrel.
Inflation fell to 2.6% in June from 2.8% in May, but forecasters expected it to climb again to near 4% in November, before the recent oil price rise.
Key figures
Andy Burnham, former mayor of Greater Manchester
Keir Starmer, outgoing prime minister
Neil Bellamy, consumer insights director at GfK
Sources: The Guardian
