Overview

• GfK’s index increased by two points to -17 in August, marking its strongest reading since last December.
• Household sentiment on personal finances improved by three points, while the savings measure fell by four points to +30.
• The survey of 2,002 adults was conducted August 1–14, before official data showed July inflation accelerated to 3.8%.
• GfK cautioned that higher inflation, rising unemployment, and possible tax increases in the autumn budget could dampen sentiment.
• The major purchase index rose two points to -13, but expectations for the next 12 months slipped to -30, keeping confidence in a narrow range.