UK Consumer Confidence And Retail Sales Receive Late Summer Boost

Consumer confidence rose to -21 in September 2023, up from -25 in August, a further step up from July's -30 drop, according to data from research group GfK.

GfK's survey was carried out ahead of the latest inflation figures and the Bank of England's subsequent decision to hold interest rates.

Separately, the Office for National Statistics reported a rebound in retail sales for August, up 0.4%, turning positive on a revised fall of 1.1% in July.

'A tough call': Bank of England dovish move signals 'higher for longer' rates policy

Myron Jobson, senior personal finance analyst interactive investor, said the positive results followed some of the worst weather on record the previous month, which had dampened results as the poor weather kept shoppers indoors.

He called the latest revision a "modest" improvement, while as "weather in August improved, it was still a mixed and unsettled month, but shoppers seemingly made the most of the spells of sunshine to enjoy the last month of the summer holidays".

Food store sales improved in the period, along with non-food stores, but this was offset by a drop in the amount of fuel sold as petrol prices rose amid an oil price spike.

Online sales dipped for the month, although they remained above pre-pandemic levels.

"Despite tighter credit conditions following 14 consecutive interest rates hikes from the Bank of England and cost of living pressures, shoppers have exhibited resilience in their spending thanks to a robust labour market and rising wage," Jobson said.

"Looking ahead, Britons face a number of economic challenges for the rest of the year which could curb spending. High winter energy bills and broader cost of living considerations could put pressure on many households to spend cautiously. Wage growth is expected to slow as part of a broader loosening of the job market, which could prompt shoppers to pump the brakes on their spending."

RECENT NEWS

Dollar Weakens As Hopes For Federal Reserve Rate Cuts Rise

The strength of the US dollar is showing signs of weakening as hopes for Federal Reserve rate cuts rise in response to f... Read more

US Stock Market Pulls Back, Ending Multi-Day Rally Amid Inflation Jitters

The US stock market experienced a significant pullback today, ending a multi-day rally as investors grew increasingly ji... Read more

Investor Confidence Boosted As BT's CEO Allison Kirkby Challenges Short Sellers And Raises Dividend

BT Group’s shares have surged by 17% following a series of bold announcements by CEO Allison Kirkby. Kirkby’s assert... Read more

Market Optimism As S&P500 Briefly Peaks Amid Falling Inflation

The S&P500 index saw a brief all-time high as new data revealed a drop in America's annual inflation rate to 3.4% in... Read more

Sony's Strategic Share Buyback: Impact On Stock Performance

In a bold move signaling confidence in its financial stability and future growth prospects, Sony recently announced a si... Read more

The Hidden Costs Of Investing In BDCs

Business Development Companies (BDCs) are often lauded for their attractive yields, appealing to investors seeking subst... Read more