United Kingdom: Burnham sentiment bounce – Deutsche Bank

Deutsche Bank strategists have noted a significant improvement in public sentiment towards Prime Minister Burnham and Labour. Their household survey reveals optimism about stronger economic growth under the new government, although households are more cautious about their personal finances, with this optimism largely influenced by younger and higher-income respondents.

Despite being in his first month as Prime Minister, Burnham has already experienced a boost in popularity. In recent polls, Labour is now the most favored party, surpassing Reform for the first time in nearly 18 months. This newfound support has trickled down to the economy as well. The dbDIG household survey revealed two key findings.

First, when asked to predict whether Burnham would be able to deliver stronger economic growth compared to the previous administration, households were predominantly optimistic. In fact, there was a net balance of +21% of households that were confident in the new government's ability to achieve better economic growth, with younger respondents (18-34 years old) demonstrating the highest level of optimism.

Additionally, higher-income households (earning more than GBP 50k) were the most bullish, with a net balance of +37% on economic optimism. However, the survey also highlighted a more nuanced picture when it comes to households' personal finances. While only 2% more households expect to be financially better off under the new government, this sentiment varies greatly across different age groups, with younger respondents being the most positive and older age groups much less so.