UK consumer confidence showed slight improvement in August, with the GfK Consumer Confidence Index rising two points to -17. Four key measures increased, including the Major Purchase Index, which tracks big-ticket items such as furniture, up two points to -13 — matching last year's level.
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Confidence in personal finances saw the most significant uplift, with both retrospective and forward-looking measures rising three points. Neil Bellamy, Consumer Insights Director at GfK, attributed this to the Bank of England's 7 August interest rate cut, which brought borrowing costs to their lowest level in over two years.
Despite this, concerns remain. Inflation has reached its highest point since January 2024, and unemployment is climbing. The Savings Index dropped four points to +30, three points lower than a year ago.
Bellamy cautioned that while August's index is the strongest reading of 2025, sentiment remains fragile. 'Consumers are still in wait-and-see mode,' he said, warning that unexpected economic shifts or tax changes in the upcoming autumn Budget could trigger sharp swings in confidence.
Overall, while there are early signs of stabilisation, UK consumers remain cautious amid ongoing economic pressures and uncertainty.
Source: www.bigfurnituregroup.com
