UK consumer confidence rises after falling for seven months: survey

BRITISH consumer confidence inched up in July after seven straight months of decline, possibly reflecting the introduction of support payments for low-income households, a survey showed on Wednesday.

YouGov and consultancy Cebr said on Wednesday their overall consumer confidence index rose 2 points in July, representing the first uptick since November.

The survey comes days after the Bank of England (BoE) said Britain would enter a recession at the end of 2022 and gave a grimmer outlook for inflation, projecting consumer prices would rise more than 13 per cent in October.

The YouGov/Cebr survey was carried out before the BoE’s forecasts were announced on Thursday.

The first instalment of one-off government payments of £650 (S$1,085) to millions of low-income households struggling with soaring costs of living commenced in July, which YouGov and Cebr said could have helped boost sentiment.

Still, the overall public mood around household finances remained downbeat, they added.

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“While the first cost-of-living payments have started to arrive, questions remain regarding the type of support households can expect over the coming months, with the energy price cap set to rise to new record highs,” Kay Neufeld, head of forecasting at Cebr, said.

Britain’s cap on domestic energy prices is expected to rise to over £4,200 a year in January, up 230 per cent on the year before, analysts said on Tuesday. REUTERS