UK & US consumer confidence jumps on stronger than expected economic rebound

consumer confidence

UK consumer confidence rose for the sixth month in a row in July, driven by the economy recovering much faster than initially expected.

GfK’s latest consumer confidence index edged up two basis points to -7 this month, marking the strong improvement in households’ outlook since the initial easing of Covid-19 restrictions in mid-April.

The index is now 20 basis points higher than it was a year ago.

Meanwhile, GfK’s major purchase index has increased by seven points to 2 in July.

“Consumer confidence edged ahead of its March 2020 pre-lockdown headline score by two points to -7 in July and has held firm or improved for six months in a row,” GfK client strategy director Joe Staton said.

“Personal finance expectations for the next year remain strong and there’s a dramatic jump this month in our major purchase sub-measure with shoppers agreeing that now is the ‘right time to buy’.

“The healthy seven-point rise aligns with strong retail growth figures that reflect the gradual unlocking of the UK high street and release of pent-up demand as Brits hit shops, restaurants and venues.”

On the other hand, U.S. consumer confidence jumped to its highest level in nearly 1-1/2 years in June as growing labor market optimism amid a reopening economy offset concerns about higher inflation. WASHINGTON, (Reuters) Reported.

The survey from the Conference Board showed a healthy appetite for long-lasting manufactured goods such as motor vehicles and household appliances, suggesting strong momentum in the economy as the second quarter ended.

The Conference Board’s consumer confidence index raced to a reading of 127.3 this month, the highest level since February 2020, from 120.0 in May. Economists polled by Reuters had forecast the index at 119.0.

The survey places more emphasis on the labor market, which is steadily recovering. More than 150 million Americans have been fully vaccinated against the coronavirus, allowing for broader economic re-engagement.


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