GfK’s consumer confidence index climbed to -14 in August, rising three points from the previous month’s net score.
The rise marks the fourth consecutive month of improving consumer sentiment, with confidence growing steadily since May.
The upward trend began when Sir Keir Starmer’s government was on the brink of collapse following John Healey’s resignation as defence secretary.
Healey, now serving as Chancellor and leading the government’s cost of living efforts, stands to benefit from the improved public mood.
Neil Bellamy, insights director at GfK, suggested the higher score may indicate that people had “greater faith” in Healey and Andy Burnham.
GfK’s sentiment score is closely watched by economists and serves as a key barometer of household financial health across Britain.
Bellamy cautioned, however, that it was “too soon to tell” whether confidence levels would continue on their upward trajectory.
“With inflation back on the rise — now at 2.9 per cent and the highest in four months — and with continued uncertainty in the Middle East and elsewhere, there are still many challenges ahead that will test the mettle of UK consumers,” Bellamy said.
Among individual measures tracked in the survey, the strongest reading came from people’s sentiment about their personal financial situation over the next 12 months, scoring four.
By contrast, respondents rated the general economic outlook over the next 12 months at -23, reflecting continued caution about broader conditions.
The survey of approximately 2,000 people also showed that consumers were feeling more confident about making major purchases than in previous months.
The findings align with similar improvements in consumer confidence recorded separately by the British Retail Consortium on Thursday.
Helen Dickinson, chief executive of the industry group for supermarkets, said Burnham and Healey were enjoying a “honeymoon boost driven by less pessimism about the outlook”.
Dickinson struck a cautious note, pointing to the upcoming Budget as the real test of the government’s economic intentions and priorities.
“The Budget will be the acid test of this government’s real commitment to growth: if the government can reduce retail business costs, from energy bills to business rates, it will be ordinary households who feel the benefit,” Dickinson said.
Burnham has pledged to lead a “cost of living government”, with policies on reducing household energy bills and cutting taxes for pub landlords already announced.
The Chancellor has also promised to offer businesses further “breathing space”, with devolution expected to serve as a key growth lever for the new administration.