UK consumer sentiment improves in August amid Burnham boost

(Alliance News) - UK consumer sentiment picked up in August, as a new prime minister helped make consumers more optimistic about the outlook of the UK economy.

Data from the British Retail Consortium-Opinium consumer sentiment monitor on Thursday showed expectations for the state of the UK economy over the next three months increased to minus 28 points in August from minus 36 points in July.

Expectations for personal finances improved to minus 9 in August from minus 12 in July.

Expectations for overall personal spending rose to plus 15 in August from plus 13 in July, while expectations for personal spending on retail improved to plus 8 points from plus 1 point.

Consumer expectations for personal savings meanwhile fell to minus 5 points in August from minus 4 points in July.

Helen Dickinson, chief executive of the British Retail Consortium, said: "Consumer sentiment continued to rise with confidence in the economy hitting its highest level since the historical lows reached at the start of the Iran conflict. Expectations for personal finances saw a small improvement, driven by an optimistic Gen Z. This same generation also reported a bump in spending plans, as the stifling summer heatwaves are expected to give way to more shopping-friendly temperatures in much of the country."

UK consumers also were reacting to Andy Burnham taking charge at 10 Downing Street, Dickinson said.

"The Burnham administration is enjoying a honeymoon boost driven by less pessimism about the outlook, but maintaining that momentum will depend on whether the government can ease the pressure on household budgets. Retailers compete fiercely to keep the cost of food and essentials down, yet mounting regulatory and tax burdens risk pushing prices higher.

"The budget will be the acid test of this government's real commitment to growth: if the government can reduce retail business costs, from energy bills to business rates, it will be ordinary households who feel the benefit. A budget that backs retail and reduces costs is a pro-consumer budget."

The UK government budget announcement is scheduled for October 28.

The survey was conducted between August 4 and 7 among 2,000 UK adults.

By Tom Budszus, Alliance News slot editor

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