"Consumer confidence is still seriously depressed and we should treat this month's modest improvement with caution"
- Nick Moon, GfK Social Research managing director
U.K. consumer confidence rose to seven-month high in January as consumers became more optimistic on the outlook of the country's economy, estimated GfK NOP Ltd. An index of sentiment rose to -29 from -33 in December.
"A few rays of light have started to reach long-suffering consumers, including falling inflation and the recent reduction in energy prices," Nick Moon, GfK Social Research managing director, said in a statement.
"Consumer confidence is still seriously depressed and we should treat this month's modest improvement with caution."
"Risks of a double-dip recession, and our expectation that the deterioration in the labor market has not bottomed yet, make it unlikely that consumer confidence will continue improving significantly from here," said Blerina Uruci, an economist at Barclays Capital in London.
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