Consumer confidence at highest level for 15 years

Consumer confidence is at its highest level since the late 1990s, according to new figures from GFK. 

Following a fall in consumer confidence in May, the research firm’s latest Consumer Confidence Barometer increased six points to 7 in June, with all five measures used to calculate the index reporting increases.

The index measuring changes in personal finances during the last 12 months has increased five points to 4, 13 points higher than June last year, while the forecast for personal finances over the next 12 months increased two points to 5.

The measure for the general economic situation of the country over the last 12 months increased by three points to 4, while expectations for the general economy over the next 12 months increased four points to 4, which is nine points lower than June 2014.

Meanwhile, the major purchase index increased by 14 points in June to 16 – 18 points higher than the same time last year – while the savings index increased seven points to 4.

Joe Station, head of market dynamics at GFK, said: “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. June’s six-point jump takes the overall index score back to levels not seen since the late Nineties or early days of the Noughties.

“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.”