A rise in consumer confidence is showing ‘renewed optimism’ for the UK economy, according to figures by research group GfK.
The Consumer Confidence Index improved five points in August after a marked drop in July, and now sits at minus 25.
The long-running consumer confidence index hit minus 30 last month as retail sales fell and the country saw some of the heaviest rainfall recorded in July.
Consumer confidence in June had been at its strongest in 17 months, after five months of consecutive growth.
Confidence in the general economic situation for the next 12 months increased by three points to minus 30, an increase of 30 points compared to the same month last year.
The index measuring changes in personal finances during the last year also increased four points to minus three – 28 points higher than this time last year.
Joe Staton, client strategy director at GfK, said, ‘Although the headline figure remains strongly negative at minus 25, hopes for our personal financial situation for the coming year are heading back towards positive territory, a metric that is key to indicating the future financial position of households.
‘This renewed optimism can also be seen in the similar turnaround for our view on the general economic outlook for the next 12 months, and the eight-point advance in major purchase intentions is potentially better news for retailers as we move into autumn.
‘However, while the financial pulse of the nation is still weak, these signs of optimism are welcome during this challenging time for consumers across the UK.’
