UK consumers gain confidence after Bank of England rate cut, GfK says https://t.co/Y8bFZqnujN pic.twitter.com/WzxwOnf6Pi
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Earlier this week, a separate survey by S&P Global also indicated an improvement in consumer sentiment, with confidence reaching its strongest point since the October budget, as the recent interest rate cut offered some relief to household finances.
“The improved sentiment on personal finances is welcome, but there are many clouds on the horizon in the form of inflation – the highest since January 2024 – and rising unemployment,” said Neil Bellamy, consumer insights director at GfK. “There’s no shortage of speculation, too, about what the autumn budget will bring in terms of tax rises.”
Despite the uptick in confidence, the overall index remains in negative territory, reflecting ongoing caution among consumers. Bellamy noted that confidence “continues to move in a very narrow band, and there’s no sense that it is about to break out into fresher, more optimistic territory.”
“The UK’s consumers are still in wait-and-see mode, and any surprises could result in sudden and sharp changes in sentiment,” he added.