Joel Muckett 29 Sep 2017 05:00pm

Consumer confidence boost defies predictions

Consumer confidence has risen for the second month in a row, contrary to commentator’s expectations, the GfK consumer index shows

Data from the GfK consumer index showed consumer confidence among shoppers had risen 0.1 to -9 since August, hitting an all-time high.

Previously, the general election and European Referendum saw it slip to -12 and commentators predicted shoppers would spend less due to inflation and weak wage growth.

GfK market dynamics head Joe Staton said consumers appeared to be in a “mixed mood” but there was a “strong note of defiance”.

“Consumers are still spending out there and have repeatedly defied predictions of a downturn since last year’s Brexit vote, partly by running down savings…or borrowing more,” he said.

While the major purchase indicator was up for a second month in a row, the savings index had sagged, Staton warned.

“It’s live now, pay later. This defiant consumer mood seems to be the ‘new normal’. But how long can it last?”