Consumer confidence reaches five-month high in January

Consumer confidence has reached a five-month high in January this year, according to figures released today. 

The consumer confidence index from polling company GfK reached a score of 1, matching the highs hit in mid-2014 and up from December’s nine-month low of -4.

All five measures used to calculate the index saw increases, suggesting that consumers are optimistic for the year ahead. The major purchase index of the survey rose to 5 points, its highest since June 2007, and up 15 points from the same time last year.

Meanwhile, the forecast for personal finances over the next 12 months rose by 4 points to 5, while the index measuring expectations for the general economic situation over the next 12 months rose by 4 points to -1.

Nick Moon, managing director of Social Research at GfK, said: “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.

“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.”

The consumer confidence survey correlates with data published by the CBI yesterday, showing that the volume of goods sold throughout the retail sector grew by 39% year-on-year in January.