(Bloomberg) -- Confidence among British shoppers picked up in June, though it remains far below pre-pandemic levels.
GfK's gauge of consumer sentiment rose six points to a reading of -30, according to a report published Friday. Stores in England opened earlier this week.
Read More: Glimmer of Hope for U.K. Stores as Data Point to Shopping Surge
“We have seen queues as some shoppers return to battered high streets,” said Joe Staton, GfK client strategy director. But “with the labor market set for more job losses, we have to question whether we are seeing early signs of economic recovery or that infamous ‘dead cat bounce.'”
All five measures that make up the index rose, as consumers declared themselves less pessimistic about the economic outlook and more willing to make major purchases.
A separate report from the Institute for Fiscal Studies warned that persistent economic weakness could mean that U.K. borrowing levels remain elevated.
A slow recovery could leave the budget deficit as much as 70 billion pounds ($87 billion) higher in the 2024-25 fiscal year than the Office for Budget Responsibility predicted in March, the think tank said. Even a faster rebound may mean borrowing is 40 billion pounds higher.
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