Consumer morale grows for third straight month

Consumer confidence ticked up for the third month in a row in April to hit levels not seen since last April, as expectations grow that the coming year will see improvements in both the economy and people’s own personal financial situations.

The well-watched GfK NOP Consumer Confidence index showed UK consumer confidence rose to a reading of -27 this month, up 3 points month on month and now at its highest level since April last year.

Although the reading remains negative, and therefore indicates ongoing worries about the economy and the state of people's finances in this country, market research firm GfK NOP, which does the research on behalf of the European Commission, said three consecutive rises represented a positive trend.

Rachael Joy, from GfK NOP, said: 'This is now the third consecutive month that we have seen a rise in the index - suggesting a definite upward trend - and it's largely driven by the public's perception that the next twelve months will be better for both our own personal finances and particularly for the economy in general.'

The main driver of the increase in overall confidence was people's improving expectations for the general economic situation over the next 12 months.

GfK NOP said the reading rose 16 points to -15, hitting levels not seen since August 2007.

Regarding their own personal situation, GfK NOP said people were positive going forward, with the reading for the outlook for the next year rising from -6 to -3.

The research found people were more willing to make big purchases, with the major purchases reading rising for the fifth month in a row.

However, although a number of measures have improved, confidence remains weak overall. The headline figure remains just 12 points above last July's all time low of -39, and is still historically low.

GfK NOP said next month's reading would be particularly important as it will be carried out in the wake of the Budget announcement.