United Kingdom: Consumer confidence bounces back in August
August 29, 2014
In August, the GfK NOP consumer confidence indicator rose to 1 point, which was up from the minus 2 points recorded in July and marked a return to positive territory.
August’s figure was driven by improving expectations in all the components that make up the index. Consumers’ views of their personal financial situations in the past and their expectations regarding their future financial conditions improved over July. In addition, households were more optimistic regarding the general economic situation; their perceptions regarding the previous 12 months and the next 12 months both improved. However, households’ assessments of future financial conditions are being affected by the increasingly likelihood that the Bank of England will carry out a rate hike in the coming months, which could tighten access to credit and increase mortgage payments.
Author: Dirina Mançellari, Senior Economist