After declining for seven months, consumer confidence in the UK somewhat increased in July, presumably as a result of implementation of assistance payments for low-income households.

A survey released on Wednesday by YouGov and the consulting firm Cebr showed their overall consumer confidence index increased by 2 points in July, the first improvement since November.

The survey findings came just a few days after the Bank of England forecasted a recession in the UK at the end of 2022 and issued a more pessimistic inflation estimate, predicting an increase in consumer prices of more than 13 percent in October.

The YouGov and Cebr survey was performed prior to the Bank of England’s projections.

YouGov and Cebr said that the start of a one-time government benefit payment of 650 pounds ($787) to millions of low-income households in July may have contributed to the uptick in mood.

However, they continued, the general attitude of home finances remained depressing.

source: reuters.com