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Consumer confidence in UK bounces back in August

Staff Writer |
Consumer confidence in Britain rose at its fastest monthly pace since 2013, which suggested people were taking the economic effects from voting to leave the European Union in their stride.

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The YouGov/Centre for Economics and Business Research (CEBR) consumer confidence index rose by 3.2 points in August, for its biggest month-on-month increase since February 2013. Standing at 109.8, the index had now recovered about half the ground lost since the Brexit.

The survey revealed increases in people's expectations for the next year for property value, household financial situation, job security and business activity.

CEBR director Scott Corfe, said."This month's improvement in consumer confidence follows positive news from other areas of the economy and slightly punctures the arguments of those who predicted immediate economic armageddon following a Brexit vote.

"With consumer confidence rising and year-on-year retail sales up it is evident that the public have yet to feel many - if any - effects from the vote to leave the EU. Both inflation and unemployment are low, for now, which is undoubtedly supporting consumer optimism.

"However, this could easily change next year as the weakness of sterling pushes up the cost of imports. 2017 could be the year that consumers stumble."

The poll follows news that retail sales in August reversed much of their post-Brexit vote fall, as UK retailers posted their strongest sales in six months.

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