Consumer confidence rebounded in August thanks to lower inflation, higher interest rates, and rising earnings, boosting GfK's Consumer Confidence Barometer by five points. This suggests optimism amid the cost of living crisis.
While still in the negative at -25, this marks an improvement from last year's -44. All five index components increased this month, notably the major purchase index, which rose by eight points to -24 from August 2022's -38.

Joe Staton, client strategy director at GfK, says this is “potentially better news for retailers as we move into autumn” and ahead of the key Christmas trading period.

Consumer confidence in personal finances rose by five points to -15 from -25 in 2022. The outlook for the next 12 months increased by four points to -3, up significantly from -31 in August last year, indicating improved household financial positions. Additionally, perceptions of the past year's general economic situation increased by six points to -52, and the outlook for the coming year improved by three points to -30.

People are also more positive about their ability to save, with the savings index rising one point to 27. While this doesn’t contribute to the overall index score, it does show a positive trend as this has steadily risen from 18 in August 2022.

Marketers should maintain optimism and adaptability, ensuring a deep understanding of market dynamics. Their focus should be on crafting consumer-centric brand strategies that respond intelligently to changing conditions. Staton's conclusion emphasizes the significant role of a strong brand in times like these. Just as optimism is a source of power, so is the strength of a well-established brand. To succeed, marketers must blend optimism with adaptability. If optimism is power, so too is a strong brand, especially in times like these Staton concludes.