\n New figures from GfK show overall consumer confidence rose by six points in July to minus 17 – the largest monthly increase since November 2023.\n<\/p>\n
\n Although confidence remains below zero, the sharp improvement suggests households are becoming more optimistic after years of high inflation and cost-of-living pressures.\n<\/p>\n
\n The research was carried out between July 1 and July 14, before Andy Burnham officially entered Downing Street, meaning respondents were reacting largely to expectations surrounding the new Prime Minister rather than his policy announcements.\n<\/p>\n
\n Confidence in the UK’s economy over the past year climbed 10 points to minus 39, while expectations for the year ahead improved by eight points to minus 28.\n<\/p>\n
\n People also appeared more willing to spend, with GfK’s Major Purchase Index \u2013 which measures confidence in buying expensive items such as furniture, electrical goods and cars – jumping eight points to minus 12, its greatest improvement in months.\n<\/p>\n
\n Confidence in personal finances over the next year also edged into positive territory, rising three points to plus one.\n<\/p>\n
\n Neil Bellamy, Consumer Insights Director at GfK, said: “Hot on the heels of the summer heatwaves, July has delivered a wave of optimism.”\n<\/p>\n
\n He suggested several factors had combined to improve sentiment.\n<\/p>\n
\n “The sense of a fresh start following the appointment of a new Prime Minister surely accounts for some of this bounce.”\n<\/p>\n
\n Bellamy also pointed to hopes that tensions in the Middle East would ease.\n<\/p>\n
\n “There were also hopes at the start of July that the Middle East conflict might stabilise and bring UK fuel prices down.”\n<\/p>\n
\n He added that England’s performances at the FIFA World Cup had also helped boost morale.\n<\/p>\n
\n “The feel-good factor of the Fifa World Cup will have reinforced sentiment too.”\n<\/p>\n
\n Despite the sharp improvement, Bellamy cautioned that households are not yet out of the woods.\n<\/p>\n
\n “July’s improved Overall Index Score remains within the narrow range seen since the end of 2023, and it is a decade since the headline score was in positive territory.”\n<\/p>\n
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\n He said the Government would now need to turn optimism into lasting economic improvement.\n<\/p>\n
\n “For the ‘Burnham bounce’ to be sustainable and boost consumer confidence, it will require consistent delivery by the refreshed UK Government against deep cost-of-living challenges and persistent low economic growth.”\n<\/p>\n
\n The figures provide an encouraging early sign for Prime Minister Andy Burnham and Chancellor John Healey, who have already announced a series of cost-of-living measures, including a cut to VAT on electricity bills, the return of the \u00a32 bus fare cap and plans to review the frozen \u00a312,570 income tax personal allowance in the Autumn Budget.\n<\/p>\n
\n While confidence remains in negative territory, the biggest monthly rise since 2023 suggests households are beginning to believe the economic outlook could finally be improving.\n<\/p>\n
\n Good weather, sporting success or cost of living help – what’s making you feel positive this summer? Tell us in the comments below…<\/p>\n","protected":false},"excerpt":{"rendered":"New figures from GfK show overall consumer confidence rose by six points in July to minus 17 –…\n","protected":false},"author":2,"featured_media":711136,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[84,1294,56,54,55],"class_list":["post-711135","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/711135","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=711135"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/711135\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/711136"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=711135"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=711135"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=711135"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}