Fresh signs of the UK’s improving economic health emerged today as a consumer confidence index hit a new high.
The Lloyds Bank Spending Power Report for August found confidence in the UK’s economic situation continues to improve month on month, fuelled by optimism about the housing market. Negative sentiment about the UK employment situation, and the state of the UK’s financial situation both eased during the month.
The rise in consumer confidence – to 115 points, the highest since the survey began in November 2010 – is expected to push consumer spending, which constitutes about 60 per cent of GDP – still higher.
Patrick Foley, chief economist at Lloyds Bank, said: “With spending on essentials still relatively stable overall and positive coverage of the improving economic backdrop, the rise in confidence is not surprising, but very encouraging. It may in time embolden consumers to spend, so helping to underpin the wider economic recovery. In turn, such spending would further help improve the outlook for growth and jobs.”