A new survey has revealed that consumer confidence rose slightly this month, with indications that shoppers are more willing to splash out on expensive items.
According to the latest GfK NOP Customer Confidence Barometer, sentiment was up by four points from -33 in December to -29 in January – the same reading as in January 2011. The sentiment for buying expensive goods, meanwhile, was up from -29 to -22 month-on-month.
The survey comes after official data from the Office for National Statistics revealed that the UK economy contracted by 0.2 per cent in the fourth quarter of last year, prompting renewed fears that Britain could be on the verge of a double-dip recession.
“The four-point improvement in the Index this month is surprising in light of the fall in GDP and possible slide back into recession,” said GfK NOP Social Research managing director Nick Moon. “However, despite this, a few rays of light have started to reach long-suffering consumers, including falling inflation and the recent reduction in energy prices.”
Mr Moon noted that part of the improvement in confidence may be due to a “hangover” from Christmas, and suggested the impending Olympic Games could provide a similar boost.
