UK consumer confidence maintains momentum

Consumer confidence in the UK increased this month, according to the latest figures from GfK’s Consumer Confidence Barometer, as consumers felt more upbeat about the economic situation and their personal finances.

GfK states that the headline index rose three points to 7 in August. In addition, four of the measures used to calculate the index saw increases this month, while one measure saw a one-point decrease.

Joe Staton, head of market dynamics at GfK, said: “Consumers continue to report higher levels of confidence this month maintaining the positive growth curve we’ve seen since the start of 2015. Rising house price inflation and improving employment growth prospects, combined with falling petrol prices and day-to-day living costs, as well as low interest rates, are translating into high levels of confidence across all major measures.”

While the forecast for personal finances over the next 12 months rose by 1 point to 7, the index measuring expectations for the general economic situation over the next 12 months increased by four points to 3, ten points higher than August 2014.

Meanwhile, the climate for major purchase index climbed by six points to 17; 18 points higher than this time last year.

Staton added: ”Confidence in the future for both our personal financial and general economic situation for the next 12 months remains strong – consumers now believe that UK economic recovery is robust, we’re in the black and that prospects for growth are fact and not fiction.”