View of the Bank of England in the financial district in London on Thursday, March 23, 2023.The UK central bank raised interest rates by another quarter of a percentage point, adding to the strain on budgets for many households. – ReuterspicBritish consumer confidence rose this month to its highest level in a year, helped by improving sentiment around the economy and despite persistent gloom over personal finances, a survey showed on Friday .
While still at levels historically associated with recessions, the improvement chimed with other gauges of Britain’s economy that suggest it could sidestep a long-lasting downturn that had been widely predicted last year. “A small improvement in the overall index score this month masks continuing concerns among consumers about their personal financial situation,” said Joe Staton, client strategy director at GfK.
Consumer price inflation rose unexpectedly to 10.4% last month, with food and drink costs rising at the fastest rate since 1977, according to official data earlier this week.