Consumer confidence rebounds to pre-Brexit level
Published: 30 September 2016 - Jenny Wonnacott
Figures released by research company GfK report that consumer confidence in September returned to the levels it had before the June Brexit vote.
The company's consumer confidence index increased by six points this month to -1. Said GfK's head of market dynamics Joe Staton: " 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?”
Meanwhile, the index measuring the forecast for personal finances over the next 12 months rose by three points to seven, and the index measuring consumer' expectations for the general economic situation over the next year increased by 13 points to -9.
The index for major purchases increased by two points to nine, remaining five points lower than this time last year.