Consumer Confidence Bounces Back to 15-Year High in August – GfK

British consumer morale unexpectedly rose in August to match June’s 15-year high, as low inflation and a recent pick-up in wages made Britons more upbeat about their financial prospects.

Market research company GfK said its monthly sentiment index jumped to +7 in August from +4 in July, matching June’s figure, which was the highest since January 2000.

With inflation at zero, a gradual recovery in pay is giving some relief to workers who suffered an almost unprecedented loss of spending power during Prime Minister David Cameron’s first term.

“Rising house price inflation and improving employment growth prospects, combined with falling petrol prices and day-to-day living costs, as well as low interest rates, are translating into high levels of confidence across all major measures,” Joe Staton, head of market dynamics at GfK said.


Craig Erlam
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the BBC and The Telegraph, and he also appears regularly as a guest commentator on Bloomberg TV, CNBC, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.