UK Consumer Confidence Jumps 10 Points in June as Burnham Bounce Lifts Outlook

1 articles · Updated · The Guardian · Jul 26

GfK said UK consumer confidence rose at its fastest monthly pace in almost three years in June, led by a 10-point improvement in views of the past year and an 8-point gain for the next 12 months.
Andy Burnham’s return to Westminster and a new prime minister helped drive the rebound, alongside a drop in inflation to 2.6% and planned support including a temporary electricity VAT cut, £2 bus fares and a 20% business-rates cut for hospitality venues.
The upbeat headline masks deep splits: over-65s remain among the gloomiest, youth unemployment is at a 10-year high, and the poorest households still report the weakest outlook.
Spending power also remains uneven, with the richest fifth’s weekly outlays up £98.10 to £1,083.60 versus a £18.10 rise to £407.30 for the poorest fifth, while household savings are concentrated in richer southern areas.
That leaves the recovery fragile for an economy where household consumption makes up about 60% of output, with consumer-facing services still 6% below pre-pandemic levels and Middle East-driven inflation risks threatening another false start.