Consumer confidence in Britain rose in January, driven by improving optimism over the outlook for the economy and personal finances, a survey by GfK NOP for the European Commission showed today.
The overall index from the survey, conducted between January 8-17, increased by two points to -17 this month and stands 20 points higher than the same month last year, with three out of five sub-measures higher than December's scores.
"Alongside the news that the economy has just crept out of recession, the return of the CCB to upward movement after two months of falling back will be welcome news for the government," said Nick Moon, managing director of GfK NOP social research.
Official data on Tuesday showed the economy grew by a much weaker-than-expected 0.1 percent in the fourth quarter of 2009, just creeping out of an 18-month recession.
The government, which is tipped to lose an election expected on May 6, predicted a return to growth by the end of last year but had been hoping for a strong recovery to help overturn its poor opinion poll ratings.
The GfK surveys showed that respondents were feeling more confident about the economic situation over the next 12 months in January, with that measure rising four points to -2. The future personal finance index was up one point to +4.
However, the desire to splash out on major purchases held steady at -16 and there is some evidence that consumers were more inclined to stash away their money rather than spend it, with the savings index rising six points to -2.