From Morningstar:

According to a recent long-running survey, consumer confidence in the UK has hit a two-year high. GfK’s consumer confidence index rose by three points to minus 19 this month. Confidence in personal finance gained two points, standing at zero. Expectations for the general economic situation and the major purchase index have also seen increases.

Despite the cost-of-living crisis still impacting many households across the UK, consumers appear to be encouraged by the positive news about falling inflation, says Joe Staton, client strategy director at GfK. “On balance, while there is national and global turmoil, the consumer confidence index has started 2024 on a positive note – let’s see if this optimism continues.”

According to Linda Ellett, UK head of consumer, retail and leisure markets for KPMG, households feeling worse about their financial security outnumber those feeling more secure by almost two to one. While inflation and interest rates are gradually reducing, consumer costs are still increasing, leading to limited appetite for spending savings on major purchases.



Read more: UK Consumer Confidence at Highest Level in Two Years