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Nigel TAYLOR Published
August 25, 2025
Just when things were looking bad as the autumn-winter seasons approach, UK consumer confidence enjoyed a surprise bounce in August.
All measures in GfK’s long-running Consumer Confidence Index reversed the declines seen in both July and June, with the headline measure increasing a welcome five points month on month, albeit to a reading that still reads -25 this time.
How so? Joe Staton, Client Strategy Director GfK cited a backdrop of falling core inflation, higher interest rates and rising average weekly earnings.
“Although the headline figure remains strongly negative… our personal financial situation for the coming year is heading back towards positive territory, a metric that is key to indicating the future financial position of households,” he said.
The index measuring changes in personal finances during the last year is up five points month on month at -15, some 10 points better than August 2025. And the forecast for personal finances over the next 12 months also increased, up four points to -3, which is 28 points higher than this time last year.
The renewed almost-optimism can also be seen in the similar turnaround on the general economic outlook for the next 12 months, and an eight-point advance in major purchase intentions “is potentially better news for retailers as we move into autumn”.
The measure for the general economic situation of the country during the last 12 months is up six points at -52, some 16 points higher than in August 2025. And expectations for the general economic situation over the next 12 months have increased by three points to -30, 30 points better than a year ago.
Finally, August’s Savings Index reading is up one point to +27, nine points higher than this time last year.
Staton added: “While the financial pulse of the nation is still weak, these signs of optimism are welcome during this challenging time for consumers across the UK.”