Consumer confidence hits a six year high

By Erin Smith

Published: 30 October, 2013

Consumer confidence has jumped to its highest level since 2007, according to new figures released by Nielsen.

It has revealed that consumer confidence levels in the UK jumped eight points in Q3 2013 to hit 87 points on its index, the highest level since Q3 2007.

The UK consumer confidence levels were the highest of the top five countries out of 60 which were surveyed, and are outpacing the European average which increased three index points to 74. The number of UK consumers that believed that the UK is in a recession dropped seven points to the lowest levels since Q1 2008.

Consumers are also feeling quite optimistic about their own financial well-being, with an increase of 4% reaching the highest level in six years; 45% of consumers feel positive about their personal finances.

UK consumers are far more willing to loosen their purse strings as well, which is excellent timing around the holiday spending period. The number of UK consumers feeling that now is good time to make purchases rose five percentage points to 39%, a seven year high, and the tendency to saving money has dropped to 63% a three year low, indicating that confidence in current the economic climate is improving.

Chris Morley, Nielsen managing director for the UK and Ireland, said: "Positive news around momentum in the UK housing market has added to the change in mood. Looking ahead, many UK households still intend to spend carefully, so we anticipate a continuation of great offers for shoppers, and that leads us to forecast an easier ride for UK consumers over the next three years."

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