A research firm called Growth from Knowledge (GfK) has revealed that there is a positive sign for the UK economy as consumer confidence has increased when compared to last year.
However, as per a closely watched index of shopper sentiment, the picture remains negative.
As per GfK, consumer demand was quick to bounce back from the shocks of surging and more expensive borrowing.
As July experienced some of the heaviest rainfall ever recorded, there was a slump in retail sales, affecting long-running consumer confidence. July saw the first fall since January.
Before slumping the previous month, for five months in a row, June had experienced the strongest performance in 17 months.
Regardless of inflation, increasing food prices, and increasing interest rates for the 14th consecutive row, which have put pressure on budgets and made borrowing more expensive, the future signs for the UK economy look bright.
Personal financial developments were perceived as being more positive because the index measuring those changes over the past year is 10 points higher than it was in August 2022.
GfK increased its prediction for personal finances for the coming year by 28 points compared to August 2022 and by four points compared to July, coming in at -3. In comparison to last month, expectations for the overall state of the economy have grown by three points to -30, which is 30 points better than it was a year ago.
Retailers may be pleased to hear that large purchase intentions increased by eight points.
The savings index increased by one point to +27, nine points more than in the same month last year, as savers benefited from strong interest rates.
While the cost of living issue persists, earnings are rising, and for the first time in almost two years, wage growth in the private sector outpaced inflation.
Despite a five-point gain overall, the index score in August was -25, which was considered negative.
“While the financial pulse of the nation is still weak, these signs of optimism are welcome during this challenging time for consumers across the UK,” the client strategy director at GfK, Joe Staton, stated.
- Published By Team Timeswire