UK consumer confidence at a nine-year high

Consumer confidence has risen to its highest level in nine years this month, since March 2005, according to figures released

by market research agency GfK in its latest Consumer Confidence Index.

The monthly GfK consumer confidence index rose one point to 1 in June, in line with expectations and up from 0 in May. It is the first time the index has been positive since March 2005, when it was also at +1.

Managing director of social research at GfK, Nick Moon, said: "An unspectacular change this month, but a psychologically important one, in that the index has moved into positive territory for the first time since March 2005.

“The next few months will be particularly interesting, since the previous venture into positive territory was merely transitory - two isolated months in January and March 2005. The last time the index was consistently positive was back in 2002 and this must be the next target from the government's point of view as we get close to the election period."

The survey also revealed that expectations for the general economic situation over the next 12 months have increased by one point this month to 13, 29 points higher than this time last year. While the ‘climate for major purchases’ index rose one point to -2, and the index forecasting consumers’ personal financial situation over the next 12 months declined by three points to 3, which is still 10 points higher than this time last year.