British consumer confidence rose to its highest level in two years this month, according to a survey released on Friday that added to a run of unexpectedly strong economic data. Households grew more confident about making major purchases.
GfK's Consumer Confidence Index climbed to -14 from -17 in July, beating the -18 reading forecast by economists in a Reuters poll.
"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.
All but one of the survey's five key sub-indexes rose in August. GfK's gauge of confidence for making major purchases reached its highest level since December 2021. Personal financial confidence for the next 12 months rose to its highest point since January, while economic expectations hit a two-year high.
Other consumer confidence surveys, from YouGov/Cebr, BRC-Opinium, Barclays and LSEG/Ipsos, have all shown increases over the last month. The GfK survey, which dates back to 1974, was based on 2,000 adults polled between July 30 and August 12.
