Consumer confidence remains upbeat in January

British consumers remain upbeat about their finances for a second month in a row in January, with GfK’s latest Consumer Confidence Barometer showing that overall confidence increased to four points in January, up from two points in December.

This increase in consumer confidence is the highest level since last summer, however, the survey also noted that households remain pessimistic about the outlook for the country's economy, as the survey only rose marginally to -5.

Joe Staton, head of market dynamics at GfK, said: “UK consumers remain resiliently bullish this month with no sign of the January Blues denting their view on the state of their personal finances for both the past year and also for the rest of 2016.”

GfK did add that major purchase index, an indicator of whether people think it is the right time to make major purchases, went up by nine points to +16, eleven points higher than the same time last year.

Staton added: “Despite some gains this month on the general economic situation for the UK – looking back and looking forward – consumers remain pessimistic with these two components of the Index still in negative territory. February’s barometer will make for interesting reading given the rocky start to global markets this year and the impact on prospects for the year ahead.”