German market research firm
Consumer confidence has improved in July as heatwaves, football success, and the new prime minister boosted mood. However, overall sentiment remains negative, with the GfK index at -17, and gains rely on government delivery to tackle cost‑of‑living pressures.
A block of UK indicators shows services activity expanding and consumer confidence firming, while manufacturing remains modest. PMI readings point to continued growth in Q3, supported by tech investment and exports, though inflation and public finances remain a risk.
Retail sales volumes have fallen again in July, led by non-food and clothing sectors, while food and drink have bucked the trend thanks to hot weather and World Cup excitement. The Official Statistics Office says promotions were pulled forward into June, reducing July gains. The three-month trend remains positive, but the high street faces momentum challenges into autumn.
UK consumer confidence has improved to a two-year high, led by expectations of better personal finances and economy, but economists warn that inflation and energy costs could erode gains. Separate data show rising unsecured lending and a two-year high in consumer sentiment, while mortgage approvals remain subdued and borrowing costs are a concern for households.