Consumer confidence has bounced back from a post-referendum dip, with Brits determined to “carry on shopping” in August.
The closely-watched GfK consumer confidence index rose by five points in August, up from minus 12 in July to minus seven – with all the measures used to compile the index going up.
Respondents' confidence about the general economy improved the most month-on-month; this measure increased by 11 points in August, rising from -33 in July to -22 in August.
The improvement comes after data from the Office of National Statistics showed spending in July was better than expected. Retail sales jumped 1.4 per cent in July – beating an anticipated 0.1 per cent increase.
Every sector felt the benefit of the warm summer weather, but analysts were cautious, commenting that retail's success might be due to widespread discounting, which the sector would not be able to maintain.
Joe Staton, head of market dynamics at GfK, said:
We're reporting some recovery in the index this month as consumers settle into the new wait-and-see reality.
The uptick in confidence is driven by good news from hard data, the combination of historic low interest rates matched with falling prices and high levels of unemployment.
We Brits are clearly determined to carry on shopping for today rather than saving for tomorrow.