CONFIDENCE among UK shoppers has climbed to a 16-year high, a new survey shows.
The consumer confidence index, published today by market researchers GFK on behalf of the European Commission, climbed to a score of seven in June from one in May.
It was as low as minus 38 during the worst months of the 2008 financial crisis.
“We’re seeing a dramatic uptick in confidence this month, a real post-election bounce that’s put a spring in the step of consumers across the UK,” said Joe Staton, head of market dynamics at GFK.
“Across all key measures we’re reporting higher levels of financial optimism for both our own personal situation and for the general economy as a whole for the coming 12 months.”
“This renewed optimism could also translate into a busy time for retailers.”
Economist Howard Archer from analysts IHS said: “The prospects for consumer spending look bright. In addition to very high consumer confidence, earnings growth is improving, inflation is negligible and employment is high and rising.”
Boding especially well for consumer spending was a 14 point rise in the Major Purchase index, a subsection of the main confidence score, to 16.