UK Consumer Confidence Hits Near Two-Year High
Consumer confidence has risen to its highest in around 21 months, with spending in July up 2 per cent as Britons spent on pubs, cinemas and domestic holidays. The figures were taken as a sign of resilience in the economy ahead of official growth data. Construction, however, was flagged as a drag.
The pick-up in mood is a rare piece of encouraging economic news, suggesting households are feeling a little more secure as inflation cools and wages hold up. Spending on leisure and hospitality points to a summer boost for the services sector, even as goods spending stays subdued. Economists caution that confidence surveys can be fickle and that the awaited second-quarter output figures will give a firmer read, with weakness in construction a worry. A steadier consumer would ease pressure on the Chancellor ahead of the autumn budget. Watch the official growth data when it lands.