Consumer confidence rose sharply in the past month reaching its highest level since last October, but is still negative.
S&P Global UK Consumer Sentiment Index rose from 45.1 in July to 47 in August: 50 indicates no change; values above 50 signal an increase or improvement; while readings below 50 signal a decrease or deterioration.
Since the survey of 1,500 households began in 2009, the average index has been 44.3.
Consumer confidence in making major purchases reached a five-month high with the level of money available to spend at its highest for 10 months.
Consumers were also confident about the state of the job market.
‘Households reported less of a squeeze on their finances, and the year- ahead outlook was the least pessimistic in nine months. This positive shift indicates less concern among consumers regarding their financial situation. Moreover, households accumulated debt to the least marked degree in three months, despite reporting a greater availability of credit,’ says Maryam Baluch, S&P Global Market Intelligence economist.
‘The headline index signalled the strongest reading since last October, greatly bolstered by robust perceptions of labour market conditions, which were the second- strongest in the survey’s history.
‘Lower borrowing costs could provide a further boost to consumer sentiment. Indeed, if the uptick in sentiment can be sustained, it could translate into better fortunes for the wider UK economy.’
