Despite the ongoing Brexit-related turmoil in Westminster, consumers managed a seasonal spring in their step this month with a three-point uptick in consumer confidence.
GfK’s long-running Consumer Confidence Index remained in negative territory at –10, but four measures used to calculate the figure improved (see below).
The analysis showed that people are feeling more positive about their personal financial situation and are taking a slightly less negative view of the general economic situation in the UK.
Importantly for retailers, the major purchase index shows people were also more likely to make a big buy, such as furniture or electrical goods. However, an increase on the savings index suggests consumers are also conserving their cash.
Joe Staton, Client Strategy Director at GfK, commented: “With the Government forecasting an economy showing modest growth, where inflation is under control, unemployment is at multi-decade lows and the employment rate is at a record level, perhaps this sunnier picture is to be expected?
“But before we see a leap back into the brighter positive numbers last seen in January 2016, consumers will need to be convinced in heart, head and wallet that Brexit’s murkiness has finally come to an end. And there are potentially dark clouds on the horizon with the next EU deadline of October 31st.”
