GfK’s long-running Consumer Confidence Index rebounded to pre-Brexit vote levels – last seen in June – increasing by six points this month to -1. All five measures used to calculate the index saw increases.
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 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?”
The Major Purchase Index increased two points this month to +9 – five points lower than this time last year.