UK consumer confidence rebounds in Oct. ’24

UK consumer confidence showed signs of recovery in October, with the S&P Global UK Consumer Sentiment Index (CSI) rising to 47.3 in October, up from 46.0 in September, marking the second-highest reading in over three years.

The survey, which included data collected between October 10 and 14, indicates a gradual recovery in consumer confidence, despite remaining below the neutral mark of 50.

“Consumer confidence is showing signs of reviving again after being hit by gloomy talk surrounding the Budget, which pulled sentiment off the recent post-election high seen in July.” Maryam Baluch, Economist at S&P Global Market Intelligence, said.

Baluch noted that the positive trend is largely supported by a robust labour market, with significant improvements in job security and income reported by households.

While concerns over the budget dampened sentiment after a post-general election surge in July, easing inflation and expectations of lower interest rates have helped to alleviate worries about the cost of living.

Households expressed cautious optimism about their financial outlook, with sentiment about future finances climbing towards July’s peak. The latest data also revealed a slight easing in financial strains, as cooling inflation—at 1.7 per cent—combined with strong wage growth has provided some relief.

Despite ongoing pressures on everyday spending, consumers’ willingness to make significant purchases remains high, indicating potential for increased spending in the coming months.

Attribution: S&P Global

Subediting: Y.Yasser