Consumer confidence continues to increase

Consumer confidence continues to increase following a rebound in December and another rise in January, according to figures released by GfK in its latest Consumer Confidence Barometer.

The Consumer Confidence Index climbed by five points in January to 1, with all five measures used to calculate the index seeing increases this month.

The forecast for personal finances over the next 12 months has increased by four points to 5, while the index measuring expectations for the general economic situation over the next 12 months rose by four points to -1, and the major purchase index saw an increase of six points to 5, which is 15 times higher than this time last year.

Nick Moon, managing director of social research at GfK, said: “With less than 100 days before the election, this big jump in the Index will be very welcome news for the government, but before we get too carried away we need as always to look at the bigger picture.

“Last month I remarked that for the first time in eight months the index had moved outside the range of -1 (plus or minus 2), and this month’s increase has done no more than return the index to that same range, albeit the upper end of it. If next month sees another rise, that will definitely signal good news for the government but, if not, it will suggest that the growth in GDP is not making people feel better off.”