UK consumer confidence index rises to near 3-year high

Data from Golden Ten on July 19th shows that consumer confidence in the UK has risen slightly to its highest level in nearly three years, but factors such as a change of government have not significantly boosted consumer confidence. The GfK Consumer Confidence Index for July in the UK recorded -13, the highest level since September 2021, but slightly lower than the market’s general expectation of -12. Joe Staton, GfK’s Client Strategy Director, stated that the sub-index measuring consumers’ willingness to purchase durable goods rose by 7 points, and the sub-index measuring personal financial situation rose by 2 points, which could be good news for retailers. However, there is no change in the view of the UK economy, and factors such as the Labour Party winning with an overwhelming advantage in the general election have not had a significant impact on public sentiment. Therefore, the consumer confidence survey for July shows the need to proceed with caution as people wait to see how the new UK government will affect the broader economy and personal finances.