UK Consumer Sentiment Reaches Five-Year High Amid Cost-of-Living Concerns

Consumer sentiment in the UK has reached its highest level in five years, according to PwC's latest Consumer Sentiment Survey. The survey recorded an index score of +1 in August, a sharp rebound from -13 in April as fears over the cost-of-living gripped consumers.

The improvement is attributed to improving household finances and lower inflation expectations. Perceived household finances are at their strongest in four years, with 39% describing their financial situation as 'healthy', i.e. having money left over for luxuries or savings. This is up from 27% in September 2022.

The growth in confidence is tempered by worries about the cost of living, with 85% of consumers citing this as one of their top concerns alongside the UK economy (86%).