Retail businesses set for growth as UK consumers increase spending
Consumer confidence has risen to its highest level since August with return of ‘feel better factor’
UK consumer confidence has seen a major boost in January with retail spending at its highest level since the summer, according to a new barometer published by market researchers GfK which coincides with the Confederation of British Industry’s (CBI) monthly report.
The barometer found that consumer confidence jumped five points in January – the highest level since August 2014 – while the CBI’s survey showed retail volumes have grown a faster pace than projected; findings which indicate a positive shift in consumer attitudes with experts pointing to the return of the ‘feel better factor’.
GfK also found that consumers were more upbeat about the economy as a whole and their own financial situations with the majority of those surveyed having said they were more likely to make a major purchase now than a year ago.
It’s not just consumers who have a more positive outlook in 2015; the CBI also reported that 50% of retailers said sales were up in January compared to 12 months ago with clothing, furniture and grocery shops having seen the biggest increase in sales.
Retailers also look confident for the future: 42% expect sales volume to increase, only 4% expect a decline.