Consumer confidence has rebounded to pre-Brexit levels as shoppers appear to shrug off fears about the economy, according to a monthly survey.
A six-point jump in the GfK Consumer Confidence Index, carried out on behalf of the European Commission, has taken it to -1, a level last seen in June, driven by improved expectations for personal finances, perceptions of the general economic situation and intentions to make major purchases.
The index measuring changes in personal finances during the last 12 months increased by two points this month and the forecast for the next year increased by three points – taking both to a point higher than this time last year.
Expectations for the general economic situation over the next 12 months have increased 13 points to -9 this month, seven points lower than this time last year.
Joe Staton, head of market dynamics at GfK, said: “Optimism is returning to UK consumers following the dramatic collapse in confidence after the recent Brexit result.
“British consumers appear to have shrugged off Brexit fears about the economy as wages continue to grow faster than prices, rising employment boosts income, and low interest rates encourage people to spend rather than save as seen by improvements in the Major Purchase Index and low levels in the Savings Index.
“But will confidence continue to rise in coming months? Or are we seeing misplaced consumer optimism in which any kind of bad news – economic or political – sends the Index reeling once again?”