UK consumer confidence has reached a two-year high, with GfK reporting its Consumer Confidence Barometer at -13 in September. This represents a one-point increase from August and is the highest level recorded since August 2024.
Consumers are reportedly more optimistic about their personal finances and the wider economy, marking the first time since summer 2024 that confidence has risen for three consecutive months. However, the recovery may be faltering as inflation climbs.
Neil Bellamy, consumer insights director at GfK, noted that the return of higher inflation removes a significant positive from previous months. Consumers are showing less willingness to buy big-ticket items, with the Major Purchase Index falling by one point, and are more inclined to save, as indicated by a five-point rise in the Savings Index.