UK Consumer Confidence Rises to Highest 2025 Level Amid Middle East Risks

British consumer confidence improved slightly in June, rising two points to -18, marking the highest level in 2025 and extending a fragile rebound. This improvement was driven by a more optimistic outlook on the general economic situation, likely influenced by easing inflation and a recent Bank of England interest rate cut. However, personal financial confidence measures remained flat, signaling limited changes in consumers' perceived spending power. The positive sentiment is tempered by concerns over rising energy costs due to escalating conflict in the Middle East, which has driven up oil prices by around 20% since May and threatens to increase petrol prices in the UK. Despite this, the overall index remains below its long-term average and below levels from a year ago, reflecting ongoing economic uncertainties. Analysts warn that the war and tariff impacts could negatively affect consumer sentiment moving forward.