UK consumer confidence bounced back in January

Consumer confidence in the UK recovered in January but it is still too early to know if that means that the economic recovery is making people better off or not, a new survey found.

Consultancy GfK’s gauge of consumer sentiment bounced back by five points in January to a reading of 1.

Economists had been expecting a reading of -3.

That follows a two point drop last month after eight consecutive months in a range near a reading of -1 (plus or minus 2).

All of the main four sub-indices, linked to consumer’s personal financial situation or savings, amongst other variables, registered an improvement in comparison to November and to January of last year.

However, the sub-index which tracks consumers’ expectations of the general economic situation for the coming twelve months, which gained four points to -1, was three points below its 2014 mark.

Nick Moon, managing director of Social Research at GfK, said: “If next month sees another rise, that will definitely signal good news for the government but, if not, it will suggest that the growth in GDP is not making people feel better off.”