Analysts predicted that the recent interest rate reduction by the Bank of England and declining inflation would play a significant roles in the shift in sentiment.
It’s also believed that a sense of increased political certainty was brought about by the general election in July.
According to the long-running Consumer Confidence Index, which is based on a survey of 2,000 adults conducted between August 1 and August 15, expectations for the UK economy over the next 12 months have decreased by four points.
The index of the market research firm dropped to -15 from -11 in July, marking the first time that the survey’s measurements of the nation’s economics.
However, the respondent’s expectation score rose from +3 in July to +6 in August regarding their personal financial status over the following 12 months.
“Consumer confidence is gradually recovering with greater inflation stability, the first interest rate cut since 2020, and the election having provided political certainty,” stated Linda Ellett, UK head of consumer, retail, and leisure at KPMG.
