British consumer confidence rose to a two-year high in August as households became more willing to make major purchases, according to a GfK survey. The latest figures add to a series of stronger-than-expected economic indicators from the UK.
GfK’s Consumer Confidence Index increased to -14 from -17 in July. Economists surveyed by Reuters had expected the index to fall to -18.
“With inflation back on the rise … and with continued uncertainty in the Middle East and elsewhere, there are still many challenges ahead that will test the mettle of UK consumers,” said Neil Bellamy, consumer insights director at GfK.
Four of the survey’s five key measures increased in August.
GfK’s measure of confidence around making major purchases reached its highest level since December 2021. This suggests households are becoming more comfortable with spending on expensive items.
Confidence in personal finances over the next 12 months also rose to its highest level since January. Expectations for the wider economy reached a two-year high.
Other consumer confidence surveys have also reported improvements over the past month. These include surveys from YouGov/Cebr, BRC-Opinium, Barclays and LSEG/Ipsos.
GfK’s consumer confidence survey dates back to 1974. The latest results were based on responses from 2,000 adults surveyed between July 30 and August 12.