Consumer confidence rises

A survey by GFK NOP has shown that consumer confidence rose to an 18-month high in November as consumers became more optimistic about the general economic situation and their personal finances. The headline index rose to -22 in November from -30 in October, which is the highest reading since May 2011.

Nick Moon, managing director of social research at GFK, said: “people are increasingly optimistic about how the economy will perform over the next twelve months. This could be because consumers now think things can’t get any worse or it may be for more positive reasons, but either way it is good news as we look ahead to 2013… The direction things head in the New Year will be crucial in determining whether this is a short-term spike or the start of a long-term improvement in people’s spending habits. When we saw a significant improvement like this in May 2011 the surge ebbed away over the following few months as the country returned to recession. Hopefully this spike is built on firmer foundations.”