No Result
View All Result
Success American Investors
  • News
  • Economy
  • Editor’s Pick
  • Investing
  • Stock
  • News
  • Economy
  • Editor’s Pick
  • Investing
  • Stock
No Result
View All Result
Success American Investors
No Result
View All Result
Home Investing

Household Confidence Peaks to Three-Year High Amid Economic Recovery

by
May 24, 2024
in Investing
0
Household Confidence Peaks to Three-Year High Amid Economic Recovery
0
SHARES
2
VIEWS
Share on FacebookShare on Twitter

Confidence among UK consumers has surged to its highest level in nearly three years, according to the latest GfK consumer confidence survey.

his positive shift suggests that families are recognising improvements in economic conditions as the six-week general election campaign begins.

GfK’s consumer confidence index climbed by two points to -17 in May, up from -19 in April. This is the highest reading since October 2021. The survey, conducted between May 1 and May 5, is likely to be leveraged by Prime Minister Rishi Sunak, who has made economic recovery a cornerstone of the Conservative Party’s election campaign. Since Sunak took office in October 2022, the index has risen by 30 points from a low of -47.

Economists closely monitor consumer confidence as an indicator of future household spending and larger asset purchases. The index is influenced by factors such as job security, real income trends, and economic growth.

According to GfK, there has been a significant improvement in households’ confidence regarding their personal financial situations for the coming year, reflecting a strengthening economy. Consumers are also increasingly optimistic about the economy’s growth prospects.

Recent figures from the Office for National Statistics showed a 0.6 per cent rise in GDP for the first quarter of 2024, pulling the UK out of a brief recession. The International Monetary Fund (IMF) also revised its growth forecast for the UK, predicting a 0.7 per cent increase this year, up from an earlier estimate of 0.5 per cent, indicating a potential “soft landing” for the economy.

Joe Staton, GfK’s client strategy director, commented: “With the latest drop in headline inflation and the prospect of interest rate cuts in due course, the trend in consumer confidence is certainly positive after a long period of stasis. Consumers are clearly sensing that conditions are improving, anticipating further growth in confidence in the months to come.”

Prime Minister Sunak announced a general election for July 4, amidst signs that the economy’s recovery from a short-lived recession and the cost of living crisis is taking longer than expected. Although inflation fell to a near-three-year low of 2.3 per cent in April, it declined more slowly than the Bank of England had forecast. Services inflation also edged down slightly to 5.9 per cent from 6 per cent, still above the Bank’s prediction of 5.5 per cent.

These inflation figures have led to warnings that interest rates may not be reduced until November. The persistent high inflation and cautious investor expectations for rate cuts have cast doubt on whether Chancellor Jeremy Hunt can reduce taxes before an anticipated autumn general election, prompting the decision to hold the vote in July instead.

Despite having lowered the rate of national insurance contributions by four percentage points over the past two fiscal events, the overall tax burden remains on track for a postwar high.

GfK’s consumer confidence index had previously plummeted to a record low of -49 in September 2022 following the ill-fated mini-budget of then-Prime Minister Liz Truss and Chancellor Kwasi Kwarteng, which included £45 billion of unfunded tax cuts. The controversial package, coupled with inflation concerns and rising interest rates, triggered chaos in the bond markets, necessitating emergency intervention from the Bank of England.

As the general election approaches, rising consumer confidence is a promising sign for the Conservatives, who aim to showcase the economic recovery under Sunak’s leadership.

Read more:
Household Confidence Peaks to Three-Year High Amid Economic Recovery

Previous Post

News Corporation Secures ‘Historic’ Partnership with OpenAI

Next Post

London Office Market Poised for Recovery as Great Portland Estates Seeks £350m Investment

Next Post
London Office Market Poised for Recovery as Great Portland Estates Seeks £350m Investment

London Office Market Poised for Recovery as Great Portland Estates Seeks £350m Investment

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!
  • Trending
  • Comments
  • Latest
Vertica: The new Israeli start-up challenger to Viagra proving ‘life-changing’ for men with ED

Vertica: The new Israeli start-up challenger to Viagra proving ‘life-changing’ for men with ED

February 14, 2024
Idaho Bucks Managed Care Trend

Idaho Bucks Managed Care Trend

December 5, 2023

Last Day to Give in 2023!

December 31, 2023

The Producer Price Index

September 9, 2023

The Southern Cause: What Led to Secession

0

0

0

0

The Southern Cause: What Led to Secession

May 31, 2025

“Our Marx”: The Great Herbert Spencer

May 31, 2025
UK steel industry faces fresh crisis as US tariff jumps to 50%

UK steel industry faces fresh crisis as US tariff jumps to 50%

May 31, 2025

Global Outcry Against U.S. Prison Forced Labor Grows as Demands for Change Mount

May 31, 2025

Recent News

The Southern Cause: What Led to Secession

May 31, 2025

“Our Marx”: The Great Herbert Spencer

May 31, 2025
UK steel industry faces fresh crisis as US tariff jumps to 50%

UK steel industry faces fresh crisis as US tariff jumps to 50%

May 31, 2025

Global Outcry Against U.S. Prison Forced Labor Grows as Demands for Change Mount

May 31, 2025

Disclaimer: SuccessAmericanInvestors.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

  • About us
  • Contact us
  • Privacy Policy
  • Terms & Conditions

Copyright © 2025 SuccessAmericanInvestors. All Rights Reserved.

No Result
View All Result
  • News
  • Economy
  • Editor’s Pick
  • Investing
  • Stock

Copyright © 2025 SuccessAmericanInvestors. All Rights Reserved.