Deutsche Bank strategists highlight a sharp improvement in sentiment towards Prime Minister Burnham and Labour. Their dbDIG household survey shows optimism about stronger United Kingdom (UK) economic growth under the new government, but households are notably more cautious about their own personal finances, with optimism skewed towards younger and higher-income respondents.

Households optimistic on UK growth

“Just a month into his premiership, Prime Minister Burnham has already seen a bounce in sentiment. The latest polls now have Labour as the most popular party, ahead of Reform for the first time in about 18 months.”

“PM Burnham’s popularity has fed through into the economy too. Our own dbDIG household survey highlighted two things.”

“First, when asked whether Burnham would be able to deliver stronger economic growth in the UK than the previous government, households were optimistic. In fact, with a positive net balance of 21%, more households are confident that the new government can deliver better economic growth, particularly among younger respondents (those aged 18-34). Across income groups, higher-income households are the most optimistic, with those earning more than GBP 50k reporting a net balance of +37% on economic optimism.”

“Second, when it comes to households’ own personal finances, the responses are more mixed, suggesting an interesting paradox between perceptions of economic growth and their own financial outlook. Across the survey as a whole, only 2% more households think they will be financially better off under the new government. The results vary significantly across cohorts, with younger respondents the most optimistic and older age groups considerably less so.”

“Opinions, estimates and projections constitute the current judgment of the author as of the date of this report. They do not necessarily reflect the opinions of Deutsche Bank and are subject to change without notice.”