Consumer confidence has returned to growth after an all time low last year as shoppers started to believe that their own financial situation would improve.
The GfK NOP Consumer Confidence Index rose two points in June to -25, nine points higher than this time last year.
The index measuring changes in personal finances during the last year has risen by one point to -18. The forecast for personal finances over the next year continues to improve and has risen two points to a score of +1. This is eight points higher than June 2008.
While Britain still remains gloomy in the recession, expectations for the general economic situation over the next 12 months have risen by eight points to -8, 37 points higher than June 2008.
However, Britons have become less inclined to splash out on major purchases, with that index down four points from May to -26.
“After a pause last month, consumer confidence once more returned to growth and is now up 14 points from its all time low of last year,” said GfK NOP’s Rachael Joy. “Confidence, however, remains fragile, as uncertainty about the strength of any recovery and an increase in unemployment all mean that consumers continue wary. Indeed, there was a firm decline in those agreeing that now is a good time for making any major purchases.”