Confidence in Household Finances Rises at Fastest Rate in a Year

• Consumer Confidence Index shows a fast growth rate
• Positive outlook for household finances
• Part of other positive figures for UK finances

The majority are feeling positive about their finances. Image: Getty

Consumer confidence has risen at the fastest rate in twelve months, according to YouGov.

The Consumer Confidence Index is based on households’ plans for major purchases and their economic situation, and their expectations for the near future.

Despite spending falling in December, it is predicted to be a better year in 2018.

The research, which interviewed more than 6,000 people, showed they felt their household finances would improve over the next year, despite the majority facing increases in council tax among other spending worries.

The move builds on a recent flurry of positive economic data, such as the UK GDP growing by more than expected, inflation rates being more gradual at 3%, and the pound performing well against other currencies.

Consumer confidence has risen to 108.2- if it is over 100 then it means that the majority of people are confident.

January’s reading is still tracking below a figure of 109.8 which was recorded in January of 2017.

Nina Skero, Head of Macroeconomics at the Centre for Economics and Business research, said, “Higher than expected GDP figures, a drop in inflation, and now an uptick in consumer confidence shows the new year is off to a promising start.

“With household finances and upcoming business activity metrics both on the rise, the 2018 slowdown that many had expected looks less likely to materialise.”

Despite this, economic growth is still expected to be slow in the early months of 2018, partially due to low faith in employment and housing.

Nina Skero said, “It’s not all good news though, as consumers remain doubtful about job security and future house prices.”