(Corrects to remove extraneous word in headline)
By David Milliken
LONDON (Reuters) -British consumer sentiment rose in October to its joint-highest level since August 2024 as shoppers took advantage of sales promotions from Amazon and other retailers, figures from market research company GfK showed on Friday.
GfK’s monthly consumer sentiment gauge – the longest-running series in Britain – rose to -17 in October from -19 in September, matching levels reached in August this year and December 2024. It was last higher in August 2024.
Neil Bellamy, consumer insights director at GfK, said the rise in the main index reflected a four-point increase in the ‘major purchase index’ component.
“This uptick is partly driven by major retailer sales events held earlier in the month. After several years of high inflation, savvy consumers have adapted their purchasing strategies to make the most of their money,” he said.
Amazon held a promotion for British subscribers to its Prime delivery service on October 7-8 and some other retailers ran competing offers.
Households’ assessment of the general economic situation and their own personal situation over the past 12 months improved, as did their outlook for the general economy over the year to come. But their view of the outlook for their own finances over the coming year worsened.
Finance minister Rachel Reeves is widely expected to announce big tax rises for a second year running at her annual budget on November 26.
British households’ saving rates remain high by historic standards, weighing on consumer spending. Economists have blamed the shock from the inflation surge in 2022, a deteriorating labour market and the risk of higher tax as possible factors behind the rise in saving.
“Consumers and UK retailers will be watching closely to see whether the Chancellor’s Budget, to be announced just two days before Black Friday, boosts or dampens spending during that crucial weekend,” Bellamy said.
(Reporting by David MillikenEditing by William Schomberg)
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