Consumer confidence returns to pre-Brexit levels
GfK’s long-running Consumer Confidence Index has increased by six points this month to -1.
Joe Staton, head of market dynamics at GfK, said: “The six-point jump to -1 restores the Index to June’s pre-Brexit levels, driven by improved expectations in our personal financial situation, perceptions of the general economic situation and intentions to make major purchases.”
While the index measuring the forecast for personal finances over the next 12 months rose by three points to 7, the index measuring consumers’ expectations for the general economic situation over the next year increased by 13 points to -9.
Meanwhile, the index measuring the climate for major purchases edged up two points to 9; this is five points lower than the same time last year.
Staton added: “British consumers appear to have shrugged off Brexit fears about the economy as wages continue to grow faster than prices, rising employment boosts income, and low interest rates encourage people to spend rather than save as seen by improvements in the Major Purchase Index and low levels in the Savings Index.
“But will confidence continue to rise in coming months? Or are we seeing misplaced consumer optimism in which any kind of bad news – economic or political – sends the Index reeling once again?”
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