Consumer confidence returned in September

Consumer confidence returned in September

Confidence among UK consumers saw an improvement in September, rebounding to pre-Brexit levels last seen in June, according to new figures. 

GfK's Consumer Confidence Index increased six points to -1 in September, with all five measures used to calculate the Index seeing increases this month. The Major Purchase Index also increased, by two points, to +9, but this was five points lower than this time last year.

Joe Staton, head of market dynamics at GfK, says optimism is returning to UK consumers following the dramatic collapse in confidence after the recent Brexit result. 

"The six-point jump to -1 restores the Index to June's pre-Brexit levels, driven by improved expectations in our personal financial situation, perceptions of the general economic situation and intentions to make major purchases. 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 despite this, he questions: "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?"