Consumer confidence rises in January

Confidence reached the highest level since last June during the month.

GfK NOP Social Research managing director Nick Moon said the rise was surprising in light of the fall in GDP and possible slide back into recession.

He said: “A few rays of light have started to reach long-suffering consumers, including falling inflation and the recent reduction in energy prices.

However, Moon said the increase could simply reflect “a hangover from the Christmas feelgood factor.”

He warned: “Consumer confidence is still seriously depressed and we should treat this month’s modest improvement with caution. Should February show another rise then we may be seeing signs that the gloom is dispelling – until then we should treat January’s findings as good, but certainly not great, news.”

All five measures used in the Index experienced an uplift, with the biggest rise coming in attitude for major purchases, which jumped 5 points against last month.

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