UK consumer confidence and retail sales receive late summer boost
Consumer confidence rose to -21 in September 2023, up from -25 in August, a step from July’s -30 drop, according to data from research group GfK.
Consumer confidence rose to -21 in September 2023, up from -25 in August, a further step up from July's -30 drop, according to data from research group GfK.
GfK's survey was carried out ahead of the latest inflation figures and the Bank of England's subsequent decision to hold interest rates.
Separately, the Office for National Statistics reported a rebound in retail sales for August, up 0.4%, turning positive on a revised fall of 1.1% in July.
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Myron Jobson, senior personal finance analyst interactive investor, said the positive results followed some of the worst weather on record the previous month, which had dampened results as the poor weather kept shoppers indoors.
He called the latest revision a «modest» improvement, while as «weather in August improved, it was still a mixed and unsettled month, but shoppers seemingly made the most of the spells of sunshine to enjoy the last month of the summer holidays».
Food store sales improved in the period, along with non-food stores, but this was offset by a drop in the amount of fuel sold as petrol prices rose amid an oil price spike.
Online sales dipped for the month, although they remained above pre-pandemic levels.
«Despite tighter credit conditions following 14 consecutive interest rates hikes from the Bank of England and cost of living pressures, shoppers have exhibited resilience in their spending thanks to a robust labour market and rising wage,» Jobson said.
«Looking ahead, Britons face a number of economic challenges for the rest of the
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