In August, British consumer morale slightly improved. However, on Friday, a survey reported that since household became gloomier about their finances, it remained subdued.
Aided by growth in its measures of house prices and job security, there was an increase to 107.6 from 107.2 in July on the monthly consumer confidence index from YouGov and consultancy Cebr.
However, for the fifth month in a row, the longest run since YouGov eight years ago, consumers’ perception of household finances became worse.
There has been a major decrease in the value of sterling, which has pushed up inflation, gnawing at consumers’ disposable income this year, after the Brexit vote last June 2016.
The national election held this year where PM Theresa May gambled away parliamentary majority has contributed to a sense of doubts among the British public.
“Although this month’s consumer confidence figures bring good news, they have to be placed in context – they have not yet returned to where they were ahead of the election,” Stephen Harmston, YouGov analyst, said.
Also, other measures regarding consumer confidence have also dropped this year.
As the Bank of England expects trade and business investment to greatly counter the slowdown in consumer confidence, neither of these contributed to the economic growth of Britain in the second quarter.
During this year’s second quarter, the economy grew by about 0.3 percent after 0.2 percent in the first quarter –resulting in the slowest growth for any major advanced economy since the start of the current year.