UK consumer confidence rises to pre-crisis cost of living level

(Bloomberg) — U.K. consumer confidence improved for the third month in a row, reaching the strongest level in two and a half years, reflecting a brighter economic outlook ahead of the general election.

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Market research firm GfK Ltd. said its sentiment measure rose 3 points to minus 14 in June, stronger than minus 16 economists expected. The number corresponds to November 2021 levels – before Russia’s invasion of Ukraine triggered the worst inflation in four decades.

The findings support Prime Minister Rishi Sunak’s argument that the economy has turned around following last year’s recession. It’s another indicator that the UK could achieve stronger growth in the coming months despite lingering concerns about rising prices.

“Confidence continues its robust long-term upward trend,” said Joe Staton, director of client strategy at GfK, in a report Friday. “The headline score remains negative due to the difficulties so many have faced as the relentless cost of living crisis hits family budgets.”

The report also showed:

• Confidence about the general economic situation over the next 12 months increased by 6 points, to minus 11, the highest value since August 2021.

• People’s feelings about their personal financial situation fell by 3 points, registering 4 points.

• Opinions about whether it’s the right time to make a major purchase rose 3 points to minus 23.

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