Consumer confidence rises sharply in July

UK consumer confidence recorded its largest monthly increase since November 2023, according to GfK’s latest Consumer Confidence Index.
The index rose six points in July to -17, with all five measures improving compared with the previous month. The strongest gains related to perceptions of the wider economy, with views of the past year improving by 10 points and expectations for the next 12 months rising by eight.

Consumers’ willingness to make major purchases also increased by eight points, potentially offering some encouragement for retailers and other businesses reliant on discretionary spending.

GfK Consumer Insights Director Neil Bellamy attributed the improvement to a combination of factors, including the summer weather, political developments, hopes of stabilisation in the Middle East and the positive atmosphere surrounding the FIFA World Cup.

However, the headline score remains firmly negative and within the relatively narrow range seen since late 2023. GfK warned that sustained improvement will depend on stronger economic growth and progress in addressing the UK’s continuing cost-of-living pressures.