UK consumer confidence increased in August to -17, up two points according to the latest figures from the GfK’s Consumer Confidence Index.

The data showed improved confidence over their personal financial situation during the last year, which increased by three points year-over-year to -4.

However, expectations for the general economic situation for the upcoming year reduced by one point to -30. This marks a seven-point decrease compared to the year prior.

Neil Bellamy, Consumer Insights Director at GfK, an NIQ Company, said: “The improved sentiment on personal finances is welcome, but there are many clouds on the horizon in the form of inflation – the highest since January 2024 – and rising unemployment.

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“There’s no shortage of speculation, either, about what the autumn Budget will bring in terms of tax rises. While August’s Overall Index Score of -17 is the best this year, consumer confidence continues to move in a very narrow band, and there’s no sense that it is about to break out into fresher, more optimistic territory.

“The UK’s consumers are still in wait-and-see mode, and any surprises could result in sudden and sharp changes in sentiment.”

The general measure for the economic situation in the UK in the past year increased by two points to -42, which is seven points lower than August 2024.