U.K. Consumers Feel Small Boost From BOE Rate Cut, Survey Suggests

UK Consumer Confidence Edges Up After BOE Rate

U.K. consumer confidence saw a slight improvement in February, following the Bank of England’s interest rate cut. According to GfK’s monthly survey, consumer confidence rose to minus 20 from minus 22 in January, exceeding economists’ expectations. While personal income expectations showed signs of improvement, views on the broader economic situation remain more negative compared to the previous year. January had marked the lowest consumer sentiment since August 2023, highlighting ongoing concerns despite the small boost in financial outlook.

In February 2025, U.K. consumer confidence showed a slight uptick, rising to minus 20 from minus 22 in January, according to GfK’s monthly survey. This increase followed a key interest rate cut by the Bank of England, which helped boost expectations for personal finances. However, while consumers felt a bit more optimistic about their own financial situations, their overall view of the economy remained pessimistic compared to the same period a year ago. January had seen the lowest confidence levels since August 2023, reflecting lingering concerns about broader economic challenges despite the improved personal finance outlook.

U.K. consumer confidence saw a slight improvement, rising from minus 22 in January to minus 20, according to GfK’s monthly survey. This boost came after the Bank of England’s interest rate cut, which positively impacted expectations for personal finances. However, despite the small gain in confidence, consumers remain pessimistic about the overall economic situation, with views still worse than they were a year ago. The January reading had reflected the lowest confidence since August 2023, highlighting ongoing concerns about the broader economic outlook.

U.K. consumer confidence slightly improved in February, rising from minus 22 in January to minus 20, following the Bank of England's rate cut. While personal finance expectations grew more positive, consumers remain pessimistic about the broader economy, with sentiment still lower than a year ago. January marked the lowest confidence since August 2023, reflecting ongoing economic concerns.

U.K. consumer confidence experienced a modest rebound in February 2025, with the GfK survey showing an increase from minus 22 in January to minus 20. This improvement follows the Bank of England's decision to cut interest rates, which provided a slight boost to personal finance expectations. However, despite the uptick in consumer confidence regarding personal finances, the broader economic outlook remains a significant source of concern. Consumers’ views on the economy were still worse than they were 12 months ago, as inflationary pressures, high living costs, and economic uncertainty continue to weigh heavily on sentiment.

January 2025 had marked the lowest consumer confidence level since August 2023, reflecting deep-rooted anxieties about economic stability. The Bank of England's interest rate cut was a key factor in the improvement of personal financial outlooks, though many consumers remain cautious about the long-term economic trajectory. Despite the rate cut, the overall mood remains one of uncertainty, particularly as issues like rising energy costs, wages not keeping up with inflation, and potential future interest rate hikes remain prominent in the public's mind.

This mixed sentiment, with some hope for personal financial improvement but persistent pessimism about the economy, suggests that the road to recovery for the U.K. economy may remain a gradual one, with consumer confidence still facing significant hurdles.