Consumer confidence extends upward streak in boost to Burnham and Healey
Consumer confidence rose for the fourth straight month in August in a sign that Brits are buying into the government’s push to tackle the cost of living, a leading survey has suggested.
GfK’s consumer confidence index rose to -14 this month, up three points from the net score last month.
Consumer confidence has been rising since May when Sir Keir Starmer’s government was on the brink of collapse following John Healey’s resignation as defence secretary.
Healey, who is now the Chancellor leading on the government’s cost of living efforts, may enjoy the windfall of higher sentiment levels across the British public.
Neil Bellamy, insights director at GfK – the research company whose sentiment score is closely watched by economists – suggested that the higher score may suggest that people had “greater faith” in Healey and Andy Burnham.
He added that it was “too soon to tell” whether confidence levels would continue on their upward trajectory.
“With inflation back on the rise – now at 2.9 per cent and the highest in four months – and with continued uncertainty in the Middle East and elsewhere, there are still many challenges ahead that will test the mettle of UK consumers,” Bellamy said.
Under a list of measures, the highest score came in people’s sentiment about their personal financial situation over the next 12 months. The reading came in at four, compared to -23 on respondents’ mood on the general economic outlook over the next 12 months.
Research also showed that people were more confident about making major purchases in the survey of about 2,000 people.
‘Reduce retail costs’ and boost consumer confidence
The data reflects similar bumps in consumer confidence recorded by the British Retail Consortium on Thursday.
Helen Dickinson, the chief executive of the industry group for supermarkets, said Burnham and Healey were enjoying a “honeymoon boost driven by less pessimism about the outlook”.
“The Budget will be the acid test of this government’s real commitment to growth: if the government can reduce retail business costs, from energy bills to business rates, it will be ordinary households who feel the benefit,” Dickinson said.
Burnham has said he would preside over a “cost of living government”, with policies on reducing household energy bills and cutting taxes for pub landlords already having been announced.
The Chancellor has also promised to offer businesses further “breathing space”. Devolution is also expected to be the main growth lever used by the new government, offering local town leaders more powers over investment decisions.