LONDON (Reuters) -British consumer confidence rose this month to its highest level of 2025 as sentiment about the economy improved, but the threat of rising energy bills stemming from war in the
UK Consumer Confidence Rises Amid Middle East Conflict Concerns
LONDON (Reuters) -British consumer confidence rose this month to its highest level of 2025 as sentiment about the economy improved, but the threat of rising energy bills stemming from war in the Middle East is hanging over the outlook, a survey showed on Friday.
The consumer confidence index from market research firm GfK rose to -18 in June from -20 in May, the highest reading since December. A Reuters poll of economists had pointed to an unchanged reading.
Nonetheless, the index remains below its long-run average of -11, and is lower than a year ago.
Brent crude oil futures have increased by around 20% since the end of May - potentially a bigger problem for Britain which already has some of the most expensive energy prices in Europe and the highest rate of headline inflation in the region.
The Bank of England said on Thursday it would remain vigilant about the risks to inflation from the conflict between Israel and Iran.
"With petrol prices set to rise in the coming weeks following the escalation of the conflict in the Middle East, and with ongoing uncertainty as to the full impact of tariffs, there is still much that could negatively impact consumers," said Neil Bellamy, consumer insights director at GfK.
The survey's gauges of past and future economic ticked higher in June, although the indexes that measure personal financial confidence - a better guide to consumer spending - were flat.
Official retail sales data for May, due at 0600 GMT, are expected to show a fall in sales volumes following a surprise surge in April that statisticians linked to good weather.
(Reporting by Andy BruceEditing by William Schomberg)
