Invest Daily Pro
  • Economy
  • Investing
No Result
View All Result
  • Economy
  • Investing
No Result
View All Result
Invest Daily Pro
No Result
View All Result
Home Economy

Consumers’ Financial Confidence on the Rise, but Dismal Outlook for UK Economy Remains

by
August 23, 2024
in Economy, Investing
0
Consumers’ Financial Confidence on the Rise, but Dismal Outlook for UK Economy Remains
0
SHARES
8
VIEWS
Share on FacebookShare on Twitter

Consumer confidence in the UK has seen a mixed shift, according to the latest Consumer Confidence Index released by market research firm GfK. The index, based on a survey of 2,000 adults between 1 August and 15 August, showed that while consumers are feeling more positive about their personal finances, their confidence in the overall state of the UK economy has decreased.

The drop in economic confidence, from -11 in July to -15 in August, is the first decline in national economic confidence in six months. This can be attributed to factors such as falling inflation and the recent decision by the Bank of England to cut interest rates, both of which are likely to have influenced the shift in consumer sentiment.

The July general election is also believed to have played a role in providing a sense of political certainty, contributing to the overall mood of consumers. Linda Ellett, UK head of consumer, retail, and leisure for KPMG, commented on the gradual recovery of consumer confidence, stating that “with greater inflation stability, the first cut to interest rates since 2020, and the election having provided political certainty, consumer confidence is gradually recovering.”

However, Ellett also noted that there is still a lack of evidence to suggest a consistent and significant increase in discretionary spending. The GfK survey found that while consumers are more optimistic about their personal financial situation over the next 12 months, there is still a sense of variability in household finances.

Despite this, recent official figures have shown signs of a gradually improving outlook for the UK economy. Retail sales grew by 0.5% in July, after a 0.9% decline in June, and gross domestic product rose by 0.6% between April and June. However, the number of businesses going bankrupt increased by 16% year-on-year in July, indicating that some businesses are still recovering from the impact of high inflation and borrowing costs in recent years.

There are also concerns that personal finances may take a hit later this year if energy prices rise, according to some commentators. GfK’s client strategy director Joe Staton noted that the recent “mortgage-friendly” cut in interest rates, and hopes for further cuts, may have contributed to the more positive outlook among consumers. He also highlighted the increase in consumer confidence regarding major purchases in the year ahead, describing it as “great news for retailers.”

Despite the mixed shift in consumer confidence, the overall index score for August remains unchanged at -13, the same as the previous month. Staton pointed out that while all key numbers this month are significantly more encouraging compared to 12 and 24 months ago, it remains to be seen if this slow improvement in the mood of the nation will continue through the autumn and winter months.

ShareTweetPin

Related Posts

Top 5 Canadian Silver Stocks of 2025
Investing

Top 5 Canadian Silver Stocks of 2025

July 11, 2025
Cygnus Metals Limited: Issue of Performance Rights
Investing

Cygnus Metals Limited: Issue of Performance Rights

July 11, 2025
Drilling recommences at Yunndaga
Investing

Drilling recommences at Yunndaga

July 10, 2025
Mark O’Byrne: Gold, Silver Prices Going Much Higher — How Much to Own?
Investing

Mark O’Byrne: Gold, Silver Prices Going Much Higher — How Much to Own?

July 10, 2025
Strong Leach Recoveries and Low Impurities
Investing

Strong Leach Recoveries and Low Impurities

July 9, 2025
Share Purchase Plan Offer Booklet
Investing

Share Purchase Plan Offer Booklet

July 9, 2025
Next Post
“Superyacht Tragedy Leaves Lynch Family Grieving and Finding Solace in Friends’ Support”

“Superyacht Tragedy Leaves Lynch Family Grieving and Finding Solace in Friends’ Support”

Recommended

Maynilad eyes April or July 2025 for IPO

Maynilad eyes April or July 2025 for IPO

November 10, 2024

“What exactly is eyeglass lens coating?”

August 20, 2024
ACCESS MCLE upholds commitment to offer the most interesting MCLE courses

ACCESS MCLE upholds commitment to offer the most interesting MCLE courses

October 30, 2024
The Best Five Sectors, #7

The Best Five Sectors, #7

February 18, 2025
PSEi rallies to 6,800 on positive market sentiment

PSEi rallies to 6,800 on positive market sentiment

August 19, 2024
Delinquent firms told to use new compliance plan

Delinquent firms told to use new compliance plan

September 22, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 InvestDailyPro. All Rights Reserved.

    Disclaimer: InvestDailyPro.com, its managers, its employees, and assigns (collectively InvestDailyPro ) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
    The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    No Result
    View All Result
    • About us
    • Contact us
    • Home
    • Privacy Policy
    • Suspicious engagement
    • Terms & Conditions
    • Thank you

    Copyright © 2025 investdailypro.com | All Rights Reserved