UK consumer confidence has risen for the second month in a row, demonstrating the smallest decline since December last year. The GfK consumer confidence index rose by two points in June, reaching -18. Economists had expected the figure to remain unchanged, but the actual numbers came in slightly better than forecasts.
While the improvement offers some relief, Neil Bellamy, consumer insights director at GfK, warns the positive momentum remains fragile. Households continue to face rising prices for goods and services, higher taxes, and early signs of a softening labor market. At the same time, fuel costs are climbing due to tensions in global markets.
On top of that, geopolitical strains are adding another layer of uncertainty to the economy. Rising oil prices and the unclear impact of newly imposed US tariffs could further dampen consumer sentiment. The expert believes it’s still too early to count on a sustained recovery.