Summer of positivity comes to a halt as investor sentiment turns

Boring Money’s Investor Confidence Index fell sharply in August, bringing an end to three consecutive months of improving investor sentiment.

The Index fell 12% from 52 in July to 46 in August, as investors became more pessimistic about both the UK and global economies. The decline takes investor confidence back to around May levels, before the increases seen in June and July.

Net sentiment towards the global economy fell 15 points, from -20 in July to -35 in August, while sentiment towards the UK economy also dropped 15 points, from -18 to -33.

There are also signs that investors are becoming more cautious with their money. 29% say they plan to move more investments into cash over the next six months.

Boring Money CEO Holly Mackay comments: “June and July were positive months as investors reacted well to the memo of understanding ending the Iran conflict and closer to home, Burnham enjoyed a brief honeymoon period. However August’s data show a less positive mindset as investors exhibit lower confidence in both local and global economies and report plans to move more to cash and to invest less. Continued geopolitical turmoil, higher energy bills, early thoughts on the upcoming October Budget, and assumed tax hikes coupled with looming higher interest rates are weighing on investors who are a lot more bearish than they were in the summer.

The Boring Money Investor Confidence Index is published monthly and tracks sentiment among UK fund investors aged 18 and over across four measures: the investor’s personal financial situation, the UK economy, and the outlook for both global stock markets and the FTSE 100. The index has been tracked quarterly since 2020, with a sample size of between 1,500 and 1,614 respondents per quarter. The Index began in April 2026, with sample sizes of 500+ each month.