Heatwaves, World Cup and Andy Burnham boosted confidence in UK economy
Consumer confidence saw a significant ‘Burnham bounce’ of six points, the biggest increase since November 2023.
GfK suggests heatwaves, football success and a new Prime Minister have “brightened the mood”, but the headline figure remains decidedly negative at minus 17.
Confidence in the country’s general economic situation in the last 12 months increased by 10 points to minus 39; This represents a five-point increase from a year ago.
The economy’s expectations for the next 12 months also increased by 8 points, reaching minus 28, that is, one point above July 2025.
The Major Purchase Index, which gauges major product confidence, rose eight points to minus 12, up three points from last July.
Personal finance for next year is up three points, reaching positive territory of one point, though it’s one point lower than last July.
The poll was conducted between July 1 and July 14, before Mr Burnham entered Number 10 on July 20 and made any policy announcements.
Neil Bellamy, director of consumer insights at GfK, said: “A hot July following the summer heatwaves has created a wave of optimism.
“The sense of a fresh start following the appointment of a new Prime Minister certainly accounts for part of this bounce.
“At the beginning of July there were also hopes that the conflict in the Middle East would stabilize and fuel prices would fall in the UK.
“The feel-good factor of the FIFA World Cup will also amplify emotions.
“However, July’s improving Overall Index Score remains within the narrow range seen since the end of 2023, and it has been a decade since the headline score was in positive territory.
“For the ‘Burnham bounce’ to be sustainable and boost consumer confidence, a renewed UK Government will need to deliver consistently against deep cost-of-living challenges and persistent low economic growth.”
Burnham’s policy commitments
Mr Burnham began his premiership with a clear focus on easing financial pressure on households, making a number of policy promises in his opening week.
Addressing his newly convened cabinet for the first time on Tuesday, the Prime Minister declared that his administration would be “the cost of living of the government”.
This commitment was quickly followed by several announcements aimed at easing the financial burden on people across the country.
Mr Burnham’s ambitious vision was first spelled out in his opening speech on Monday, where he promised to dismantle the economic policies introduced by the Thatcher administration in the 1980s.
He promised to usher in “the biggest changes in the last 40 years”, signaling a significant shift in national direction.
The policies the Burnham government has approved so far include:
