20th Jul 2026 10:31
(Alliance News) - Expectations of future finances among UK consumers ameliorated to a four-month high in early July as household debt levels stabilised, data published by S&P Global showed Monday.
Importantly, the responses for the survey were collected between July 2 and 6, before the US-Iran ceasefire was declared over by US President Donald Trump on July 8. Since then, the countries have traded strikes again, with the price of Brent oil rising.
The S&P Global UK consumer sentiment index rose to 43.4 points in July, a four-month high, from 42.2 points in June. Climbing towards the neutral 50-point mark separating growth from contraction, it indicates the pace of deterioration in consumer sentiment slowed in July.
The household finance index improved to a four-month high of 40.7 in July from 40.0 in June. The index for current finances ticked up to 38.1 points in July from 37.1 points in June.
The future index for expected finances in 12 months' time rose to a three-month high of 43.3 in July from 42.8 in June.
Meanwhile, the savings index climbed to 41.8 points in July from 40.1 points in June.
S&P Global said that after rising for 17 consecutive months, UK household demand for additional borrowing halted in July.
The index for the need for unsecured credit fell to an 18-month low of 50.0 points in July, from 52.1 points in June.
The level of debt index stood at a neutral 50.0 points in July, down from 51.1 points in June.
The debt sentiment index improved to a nine-month high of 49.7 points in July from 48.4 points in June.
S&P Global said: "This marked a welcome pause following a relatively strong demand period in the second quarter, when higher energy prices and concerns about rising interest rates increased households’ need for credit as they managed cost-of-living pressures. The need for credit eased to only marginal rates of increase in the lowest income groupings, with only those in the highest earnings bracket seeing a decreased demand for debt."
Maryam Baluch, economist at S&P Global Market Intelligence said: "Although improved sentiment was seen across the various labour market indicators tracked by the survey, job security remained a key point of concern for households, as has been the case throughout much of 2026."
She added: "The latest data underlines how exposed UK households are to geopolitical shocks, particularly when events feed through to higher energy prices back home. With tensions escalating in the Middle East again, the next survey data will be critical in assessing whether July’s improvement proves durable."
The consumer sentiment survey is based on monthly responses from about 1,500 individuals in the UK, with data collected by Ipsos MORI from its panel of respondents aged 18 to 64.
By Tom Budszus, Alliance News slot editor
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