UK consumers are becoming increasingly confident over the prospects for the general economy, despite the continued squeeze on their spending power.
Research firm GfK said its findings revealed a “conundrum of Alice in Wonderland proportions” as the measure of consumer confidence reached its highest level in almost four years.
Nick Moon, managing director of social research, said: “The explanation probably lies in the fact that there has been a steady flow of economic good news over the past few months showing the economy is growing – however anaemically.”
Today’s report came as the British Chambers of Commerce upgraded its growth forecasts for the UK, predicting economic expansion of 1.3 per cent this year, up from 0.9 per cent previously.
Although GfK’s barometer of consumer confidence remained in negative territory at minus 13 for August, meaning more people were feeling gloomy than optimistic, the reading was three points higher than the previous month and the highest since October 2009.