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Consumer confidence is rising amid gloomy economic news – here's what that means and why it matters

By Joshy Easaw, Professor of Economics, Cardiff University

People’s confidence in the UK’s economic outlook improved towards the end of 2023, despite continuing to battle a cost-of-living crisis. Although it has strengthened over the year to December, “consumer sentiment” as this confidence is called, is still in negative territory.

Indeed, UK consumer price inflation remains well above the Bank of England’s 2% target…

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