Consumer confidence jumped by five points in January to 1, after it slipped during December, according to GfK’s Consumer Confidence Index.

The index found that all measures improved over the month, but the Major Purchase Index improved the most, rising six points to 5.

“With less than 100 days before the election, this big jump in the index will be very welcome news for the Government, but before we get too carried away we need as always to look at the bigger picture,” said GfK managing director Nick Moon.

Last month was the first time in eight months that the index had moved outside the range of -1 (plus or minus 2). This month’s increase has returned the index to the same range, albeit at the upper end of it.

“If next month sees another rise, that will definitely signal good news for the Government but, if not, it will suggest that the growth in GDP is not making people feel better off,” Moon added.