The index, published jointly with the Nuremberg Institute for Market Decisions, said that consumer confidence was the highest for the year so far, albeit at a negative score of -17.

Respondents’ perceptions of their personal financial situation over the past year rose three points from July to -4, and was therefore three points above August 2024, while expectations for personal finances for the year ahead also increased three points to a positive score of five, albeit one point below a year ago.

The index found that confidence in the general economic situation over the past year had a two-point boost to -42 but was still below August 2024’s score of -35.

However, there was a one-point fall in confidence over economic performance for the year ahead, which was scored at -30 and below August 2024’s score of -15.

The major purchase index, which measures whether now is the right time to make a major purchase, was up two points to -13, the same score as a year ago.

There was a four-point fall in the savings index, albeit with an overall positive score of 30.

The findings are based on a sample of 2,002 UK adults, with interviews carried out between 1^st and 14^th August.

Neil Bellamy, consumer insights director at GfK, an NIQ Company, said: “The improved sentiment on personal finances is welcome, but there are many clouds on the horizon in the form of inflation – the highest since January 2024 – and rising unemployment. There’s no shortage of speculation, too, about what the autumn Budget will bring in terms of tax rises.

“While August’s overall index score of -17 is the best this year, consumer confidence continues to move in a very narrow band, and there’s no sense that it is about to break out into fresher, more optimistic territory. The UK’s consumers are still in wait-and-see mode, and any surprises could result in sudden and sharp changes in sentiment.”