Susannah Streeter, chief investment strategist at Wealth Club, said: “There is also some welcome relief finally emerging for consumers. After months of watching every penny amid the energy price shock triggered by the Iran conflict, oil prices have retreated to around their pre-conflict levels and drivers are already seeing respite at the pumps.
“Diesel prices have recorded their biggest monthly fall in more than a quarter of a century as easing tensions in the Middle East have taken the heat out of oil markets.
“That should leave motorists with a little more money in their pockets and could also provide a boost for hard-hit sectors such as hospitality, which has struggled as household budgets have been squeezed.
“Holidaymakers heading across the Channel are also getting a helping hand from the foreign exchange markets.
“Sterling has strengthened to around €1.17, helped by expectations that UK interest rates could remain relatively higher than those in the eurozone for longer, while lower energy prices have also improved the outlook for the UK economy.
“It means British tourists should find their pounds stretch further for everything from restaurant meals to sightseeing and souvenirs this summer.
“They may be small wins, but after the prolonged squeeze on household finances they could gradually help rebuild consumer confidence.”
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