UK consumer confidence picks up despite global growth fears

Chris Papadopoullos
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(Source: Getty)
Consumer confidence in the UK has bounced back in October, a major UK bank has said.

Lloyds Bank’s confidence index climbed five points in October to 151 points, according to figures released by the bank today.

The figure marks the survey’s second highest post-crisis level. Those surveyed were more upbeat about their employment situation, personal finances, future discretionary income and savings than a year ago.

Lower petrol prices are reported to have provided a significant boost to household budgets.

The high confidence is welcome news after the UK economy slowed over summer and its recovery was put under threat by weak growth in major economies such as the Eurozone, China, Japan and Russia.

“Consumers remain in a positive mood, with the pressure on budgets from essential spending lifting a little,” said Patrick Foley, chief economist at Lloyds Bank.

“Though risks around the economic outlook have risen somewhat, emerging signs of a modest strengthening in real wage growth should help.”

However, sentiment towards the country’s financial situation declined on the month in October despite rising on year.