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UK consumer confidence rises on VAT, transport steps and easing inflation
GfK attributed much of the June lift to improved views of the economy, including a 10-point gain for the past year and an eight-point rise for the next 12 months, even as youth unemployment remains at a decade high.
UK consumer confidence in June improved at its fastest monthly pace in nearly three years, with a major driver being how people viewed the British economy, according to GfK data cited by the Guardian Economics.
The article links the upswing to policy steps tied to household costs and spending, including a temporary VAT cut for electricity bills in Great Britain from October, a cap on bus fares at 2 pounds across England, and a 20% reduction in business rates for pubs, clubs and live music venues.
While headline inflation fell to 2.6%, faster than expected, the article argues that not all households are experiencing the same outlook. It points to gaps by age, with older Britons, especially those 65 and over, among the most pessimistic, while 16- to 29-year-olds are more optimistic despite pressures from an AI-disrupted jobs market, high rents, and elevated house prices.
The Guardian Economics also highlights that youth unemployment is at the highest level in a decade, and that poorer households tend to report the gloomiest perceptions of the economy, personal finances, and the property market.