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UK consumers at their most upbeat for nine years

According to Reuters, British consumer confidence surged this month to its highest level in a year as more households expected their finances to improve in the coming 12 months, a survey showed on Thursday.

The proportion of people feeling now was a good time to spend was also up; at 45%, it was the highest since comparable records began in late 2006.

“This rally is set against a backdrop of improving employment figures, ‘good’ deflation and increasing wages,” said Scott Corfe, associate director at Cebr.

“Although the latest GDP figures were softer than expected, it seems likely they will be revised up giving an overall economic picture that is relatively buoyant.”

The boost to household finances from low inflation is also flagged up on Wednesday by supermarket Asda, which found the average UK household had £187 for discretionary spending in April 2015, an extra £17 a week compared with a year earlier [1].

[1] Katie Allen, The Guardian Online