"There is now no doubt that consumer confidence has recovered strongly from the unparalleled trough of the last five years,"
- Nick Moon, managing director of social research at GfK
Confidence among U.K. consumers rose to the highest level in more than three years in July, according to a report by GfK NOP. The consumer sentiment index climbed to –16 in July from –21 a month earlier, reaching the highest level since April 2010. The survey was conducted a few days before the GDP figures were published, which signalled that the economic momentum doubled in the three months to June. The GDP rose 0.6% in Q2 compared to 0.3% growth in the beginning of the year, the Office for National Statistics said.
The indicator, which captures people's outlook of the general economic situation in the coming 12 months, increased 7 points from the previous month to –9. A measure of Britons' expectations of the their personal finances in the foreseeable future also climbed 7 points to zero. Also consumers become more upbeat on the country's general economic situation, with the corresponding measure rising 7 points to –35.
The economic data published this month supports the view that the economic revival is on a firm footing. Meanwhile, the IMF said despite the fact that the progress have been made in reducing fiscal risks and ensuring public debt sustainability, the economic recovery continues to be slow and fragile.
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