“The biggest changes in August are in confidence in personal finances, with the scores looking back and ahead a year each up by three points. This is likely due to the Bank of England’s August 7th cut in interest rates, delivering the lowest cost of borrowing for more than two years,” said Neil Bellamy, consumer insights director at GfK, an NIQ Company. “The improved sentiment on personal finances is welcome, but there are many clouds on the horizon in the form of inflation—the highest since January 2024—and rising unemployment.”
The index measuring changes in personal finances during the last year is up three points at -4; this is three points better than August 2024, NIQ said in a press release citing GfK Consumer Confidence Barometer—UK Measures–August 2025 report.
The forecast for personal finances over the next 12 months is up three points at +5; this is one point worse than this time last year.
The measure for the general economic situation of the country during the last 12 months is up two points to -42; this is seven points worse than in August 2024.
Expectations for the general economic situation over the next 12 months have decreased one point to -30; this is 15 points worse than August 2024.
The major purchase index is up two points at -13; this is the same as this month last year. The savings index has dropped four points to +30 in August; this is three points lower than this time last year, added the release.
“There’s no shortage of speculation, too, about what the autumn Budget will bring in terms of tax rises,” added Bellamy. “While August’s overall index score is the best this year, consumer confidence continues to move in a very narrow band, and there’s no sense that it is about to break out into fresher, more optimistic territory. The UK’s consumers are still in wait-and-see mode, and any surprises could result in sudden and sharp changes in sentiment.”
The CCB has been published jointly by GfK and NIM, since October 2023.
ALCHEMPro News Desk (SG)
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