UK Consumer Confidence Edges Higher in August Amid Mixed Economic Signals

GfK’s Consumer Confidence Index rose by two points to -17 in August, according to the latest findings from the GfK Consumer Confidence Barometer (CCB), powered by NIM. Compared with July’s results, four of the five measures improved, while one declined. The CCB, jointly produced by GfK and the Nuremberg Institute for Market Decisions (NIM)—the organisation that founded GfK—has been released collaboratively since October 2023.

Neil Bellamy, Consumer Insights Director at GfK, an NIQ company, commented that the most notable movements this month were in personal finance confidence, with both the retrospective and forward-looking indicators rising by three points. He attributed this improvement partly to the Bank of England’s interest rate cut on August 7, which reduced borrowing costs to their lowest level in over two years.

Bellamy added that, while the uptick in confidence around personal finances is a positive development, several headwinds remain. Inflation, now at its highest since January 2024, and rising unemployment continue to weigh on sentiment. In addition, uncertainty surrounds the forthcoming autumn Budget and the potential for tax increases.

Despite August’s Overall Index Score of -17 marking the strongest reading of 2025 so far, Bellamy noted that confidence remains confined within a narrow range, with little indication of a decisive shift toward greater optimism. UK consumers, he said, remain in “wait-and-see” mode, and any unexpected developments could still trigger sharp changes in sentiment.