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UK consumer confidence better than forecasts in September

Staff Writer |
Consumer confidence in the UK recovered sharply in September, picking back up to the levels seen before the referendum vote.

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GfK's gauge of consumer sentiment rose from -7 points in August to -1 in September, versus economists' forecasts for a reading of -5. It was last at that level in May and June.

"British consumers appear to have shrugged off Brexit fears about the economy as wages continue to grow faster than prices, rising employment boosts income, and low interest rates encourage people to spend rather than save as seen by improvements in the Major Purchase Index and low levels in the Savings Index.

"But will confidence continue to rise in coming months? Or are we seeing misplaced consumer optimism in which any kind of bad news - economic or political - sends the Index reeling once again?," said Joe Staton, head of Market Dynamics at GfK.

In particular, a sub-index tracking British households' confidence regarding the wider economic situation over the next 12 months jumped by 13 points to -9, contributing 2.6 points to the improvement in the headline index.

Another sub-index linked to the outlook for personal finances improved from areading of +4 to +7.

Families in Britain were also more confident as regarded the current economic situation, with that subindex up by 7 points to -16.

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