FX.co ★ UK Consumer Confidence Hits 2-Year High

The UK GfK Consumer Confidence Index rose to -14 in August 2026 from -17 in July, reaching its highest level in two years despite persistent geopolitical and economic uncertainty. Households became more optimistic about both the outlook for the wider economy and their personal finances over the next 12 months, and a growing number now see this as a relatively good time to make major purchases. Confidence has strengthened over the past two months, supported by the appointment of new Prime Minister Andy Burnham and easing energy prices. However, rapidly rising inflation threatens to undermine this improvement: consumer prices surged to 2.9% in July, a four-month high, largely driven by rising household energy costs. GfK cautioned that ongoing instability in the Middle East and other regions, alongside enduring cost-of-living pressures, could challenge consumer sentiment in the coming months.