UK consumer confidence rises after falling for seven months

LONDON: 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 yesterday.

Yougov and consultancy Cebr said their overall consumer confidence index rose two 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% in October.

UK inflation surged 9.4% in June from a year ago, accelerating at the fastest pace in four decades, reports have stated.

The Yougov/cebr survey was carried out before the Boe’s forecasts were announced last week.

The first instalment of one-off government

£650 payments of (US$787 or RM3,508) 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.

“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

£4,200 expected to rise to over (US$5,089 or RM22,682) a year in January, up 230% on the year before, analysts said.

The prospect of soaring energy bills exacerbating the cost of living crisis highlights the scale of the problems facing Britain.