Market research firm GfK has reported that UK consumer confidence has risen to its highest level in over a year, despite the soaring costs of living. Consumers have a more optimistic view of their finances and the state of the wider economy.
GfK’s consumer confidence index rose for the third consecutive month to -30 in April, showing an increase of 6 percentage points from March. This marks the highest level since February of last year, before the energy prices surged in Europe due to the Russian invasion of Ukraine.
The April Consumer Confidence Index also surpassed expectations, coming in higher than the anticipated -35.
Consumer expectations for the UK economy over the next 12 months reached a 15-month high, and forecasts for personal finances were the brightest since February 2022.
Earlier this week, official data revealed that consumer price inflation in March fell less than expected to 10.1 percent, while food and beverage prices reached their highest level since August 1977.
The increase in consumer confidence despite the rising costs of living and inflationary pressures is attributed to the overall economic recovery in the UK. Despite ongoing challenges, consumers are showing optimism about the future state of the economy and their personal finances. The positive consumer sentiment will be closely monitored by businesses and policymakers as the UK continues to navigate its economic rebound.