UK consumer confidence has staged a slight recovery from its lowest level since just after the Brexit vote, according to GfK’s latest household-sentiment index.
The index picked up two points to minus 10 this month, reversing July’s decline, as consumers’ attitudes to the economy improved across the board.
Both inflation and unemployment figures were better than expected in July, as price growth stabilised and jobless numbers hit their lowest level in more than four decades. But the failure of wages to keep pace means consumers are still suffering a squeeze in real incomes, and GfK found their economic outlook also remained near the lowest in a year.
Joe Staton, head of market dynamics at Gfk, said: “These figures must be seen against the backdrop of better news as the UK’s economy displays some signs of stability after a volatile start to the year. However, the index has a lot of ground to regain to get back to black.”