Overview

• GfK’s index rose to -17 in August, the highest reading since December, following the Bank of England’s August 7 cut to 4.0%.
• Confidence in personal finances climbed three points to -4 for the past year and +5 for the year ahead.
• The savings index fell by four points to +30, indicating households intend to put aside less money.
• GfK warns sentiment remains fragile as inflation reached 3.8% in July and concerns about rising unemployment persist; the survey ran August 1–14, before the inflation release.
• Retail leaders including John Lewis, Tesco, Sainsbury’s, Aldi and Lidl cautioned Chancellor Rachel Reeves that potential autumn budget tax rises could strain living standards.