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Shopper confidence within the UK rose for the second consecutive month in June, supported by a extra optimistic financial outlook, in line with a intently watched survey that raises hopes of stronger family spending.
The GfK client confidence index — a measure of how folks view their private funds and broader financial prospects — rose two factors to minus 18 in June, the analysis group mentioned on Friday.
It adopted a three-point enchancment in Might and took the rating to ranges final seen on the finish of 2024, earlier than US President Donald Trump introduced tariffs on most American imports. Nevertheless, it remained effectively beneath the 2015-19 common of minus 5.6.
Neil Bellamy, client insights director at GfK, mentioned the rise in confidence was “pushed by enhancements in how customers see the overall economic system”.
However, he warned, sentiment remained “fragile”, citing rising oil costs linked to battle within the Center East and continued tensions over tariffs. “Now could be definitely not the time to hope for the proverbial ‘gentle on the finish of the tunnel’,” he mentioned.
Policymakers monitor client confidence as an indicator of future spending, which impacts financial development.
Shopper spending has remained weak over the previous yr regardless of wages rising quicker than inflation. Family consumption contributed solely 0.1 share level to the 0.7 per cent general financial development within the first three months of the yr.
With interviews carried out within the first half of June, the GfK index confirmed that expectations for the overall financial outlook over the following 12 months rose 5 factors to minus 28. Nevertheless, the index monitoring respondents’ views of their future private funds remained unchanged at 2.
Improved financial information for the primary quarter and new UK-US commerce agreements, which scale back the chance posed by Trump’s import tariffs, have led economists to boost their development forecasts.
Analysts count on UK financial development of 1 per cent in 2025, up from 0.7 per cent they forecast in April, in line with information by Consensus Economics, an organization that averages main forecasters.
A separate survey by the British Retail Consortium this week additionally indicated that general sentiment is enhancing.
The findings confirmed that the proportion of individuals anticipating the economic system to enhance over the following three months rose to 34 per cent in June, from 28 per cent in Might and 24 per cent in April. Spending intentions additionally elevated.
Helen Dickinson, chief government of the British Retail Consortium, mentioned youthful generations had registered “the most important enchancment” in each their financial outlook and private finance expectations. This may increasingly partly replicate an increase within the minimal wage in April, she famous.
