A number of factors have appeared to ‘lift the mood’ despite consumer confidence remaining firmly in negative territory
Consumer confidence has seen a significant six-point ‘Burnham bounce’, the largest increase since November 2023.
GfK suggests heatwaves, football success, and a new Prime Minister have ‘lifted the mood’, though the headline figure remains firmly negative at minus 17.
Confidence in the country’s general economic situation over the last 12 months jumped by 10 points to minus 39 – five points higher than a year ago.
Expectations for the economy over the coming 12 months also rose by eight points to minus 28 – one point above July 2025.
The Major Purchase Index, indicating big-ticket item confidence, increased eight points to minus 12, three points higher than last July.
Personal finances for the next year climbed three points into positive territory at one, though one point lower than last July.
The survey was taken between July 1 and July 14, ahead of Mr Burnham walking into Number 10 on July 20 and making any policy announcements.
Neil Bellamy, consumer insights director at GfK, said: “Hot on the heels of the summer heatwaves, July has delivered a wave of optimism.
“The sense of a fresh start following the appointment of a new Prime Minister surely accounts for some of this bounce.
“There were also hopes at the start of July that the Middle East conflict might stabilise and bring UK fuel prices down.
“The feel-good factor of the Fifa World Cup will have reinforced sentiment too.
“However, July’s improved Overall Index Score remains within the narrow range seen since the end of 2023, and it is a decade since the headline score was in positive territory.
“For the ‘Burnham bounce’ to be sustainable and boost consumer confidence, it will require consistent delivery by the refreshed UK Government against deep cost-of-living challenges and persistent low economic growth.”
Mr Burnham has begun his premiership with a clear focus on alleviating the financial strain on households, rolling out a series of policy pledges in his inaugural week.
Addressing his newly assembled cabinet for the first time on Tuesday, the Prime Minister declared his administration would be a “cost of living government”.
This commitment was swiftly followed by several announcements aimed at easing the financial burden on people across the country.
Mr Burnham’s ambitious vision was first articulated in his inaugural speech on Monday, where he vowed to dismantle economic policies introduced by the Thatcher administration in the 1980s.
He promised to usher in “the biggest changes in the last 40 years,” signalling a significant shift in national direction.
Here are the policies that have been confirmed by the Burnham government so far:
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