7.8 C
London
Thursday, December 12, 2024
HomeNewsUK Consumer Sentiment Held at Nearly Three-Year High in August

UK Consumer Sentiment Held at Nearly Three-Year High in August

Date:

Related stories

Gazprom Maintains Stable Gas Deliveries to Europe, Sending 42.3 Million m³ on Monday

Brussels, October 14 (FinanceFlashNews.com) – Gazprom, Russia’s gas producer,...

Markets Anticipate Faster ECB Rate Cuts as Eurozone Inflation Falls

Frankfurt, October 14 (FinanceFlashNews.com) – Financial markets are predicting...

Tax Hike in France Will Hurt Investments, Warns Stellantis CEO

Paris, October 14 (FinanceFlashNews.com) – The French government's plan...

Finland’s Inflation Drops to Lowest Level in Nearly Four Years

Helsinki, October 14 (FinanceFlashNews.com) – Year-on-year inflation in Finland...

Moody’s Downgrades Belgium’s Credit Outlook to Negative

Brussels, October 13 (FinanceFlashNews.com) – Moody's Ratings downgraded Belgium’s...
  • UK consumer confidence remained at its highest level since September 2021, with the GfK index steady at -13 points in August.
  • Optimism was driven by improved outlooks on personal finances and willingness to make major purchases.
  • The Bank of England’s recent interest rate cut contributed to the positive sentiment, but future rate decisions remain uncertain.

London, August 23 (FFN)Consumer sentiment in the UK remained at nearly a three-year high in August, buoyed by optimism regarding personal finances and major purchases. This was revealed by the latest consumer confidence survey from the GfK institute, as reported by Reuters.

The GfK Consumer Confidence Index remained unchanged at -13 points in August, the same as in July, which also marked the highest level since September 2021. However, the results fell short of economists’ expectations, who had anticipated an increase in the index to -12 points.

The main confidence index was bolstered by two sub-indices: the willingness to make major purchases, which rose to its highest level since January 2022, and the expectations for personal finances, which also improved.

Analysts attribute the higher consumer optimism to the Bank of England’s interest rate cut in early August, which lowered the main rate from a 16-year high of 5.25% to 5%.

However, the decision was narrowly passed by the Bank’s Monetary Policy Committee, with a 5-4 vote, reflecting a divide among members on whether inflationary pressures have sufficiently eased. Bank of England Governor Andrew Bailey and other officials have indicated that further rate cuts might be postponed in the coming months.

Investors are also uncertain about the upcoming September meeting of the central bank, with only a 30% chance of another rate cut expected. Many anticipate that the Bank of England will make one more rate cut this year, likely at its November meeting.


IndicatorJuly 2024August 2024Expectations
GfK Consumer Confidence Index-13 points-13 points-12 points
Bank of England Interest Rate5.25%5.0%(Not Provided)
Financeflashnewshttps://financeflashnews.com
This article was written by the editorial team of Financeflashnews. We strive to provide you with accurate and up-to-date information from the world of finance and investment. If you find any errors in the article, please let us know at corrections@financeflashnews.com. Your feedback is valuable to us and will help us improve the quality of our content.

Subscribe

- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

Latest stories