U.K. consumer confidence staged a slight rebound from its lowest level since just after the Brexit vote.
GfK’s household-sentiment index picked up two points to minus 10 this month, reversing July’s decline, as consumers’ attitudes to the economy improved across the board.
“These figures must be seen against the backdrop of better news” as “the U.K. economy displays some signs of stability after a volatile start to the year,” said Joe Staton, head of market dynamics at GfK. “However, the index has a lot of ground to regain to get back to black.”
Better Outlook
Both inflation and unemployment figures were better than expected in July, as price growth stabilized and jobless numbers hit their lowest level in more than four decades. But the failure of wages to keep pace means consumers are still suffering a squeeze in real incomes, and GfK found their economic outlook also remained near the lowest in a year.
A separate index of business confidence from Lloyds Bank fell to the least in a year in August, while economic optimism dropped to its second-lowest reading since 2012. Consumer services businesses and companies in the industrial sector were worst affected, Lloyds said.
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