New research has revealed that UK consumer confidence in June has risen to its highest level since 2005, climbing by one point this month to +1 from 0 in May and moving into positive territory for the first time in over nine years.
According to the research firm, although one point is small, the change is psychologically important and, if sustained, would be the first time since 2002, as the move into positive territory in 2005 was for two isolated months, January and March.
The survey, conducted between 2-18 June, suggested consumer spending will remain among the biggest drivers of the nation’s economic recovery, with optimism about the UK economy over the next 12 months at its highest level in about a decade.
Meanwhile, in separate news, the Office for National Statistics (ONS) confirmed today (June 27) that the economy grew by 0.8 per cent between January and March and also revised its estimate for UK manufacturing upwards to +1.5 per cent.
The overall growth rate was unchanged from earlier estimates but data showed business investment in the first quarter was stronger than first thought, rising 5 per cent on the final three months of 2013, compared with an earlier estimate of a 2.7 per cent rise.
According to the ONS, the pickup in investment was driven by business spending on software and other intangible assets. In addition, investment in new homes also rose.
The report also shows that British trade with the rest of the world contributed more to first-quarter growth than earlier estimates implied. Trade added 0.3 percentage points to growth, compared with an earlier estimate that put trade’s contribution at zero and the balance of payments with the rest of the world improved too, narrowing to a deficit of £17.4bn from a deficit of £22bn in the last quarter of 2013.