UK consumer confidence hits the high notes as interest rate rise looms
British shoppers are at their most confident since September, new survey figures reveal this morning.
The consumer confidence index published by YouGov and the Centre for Economics and Business Research (CEBR) climbed to a score of 114 in July.
Consumers are most optimistic on their job security, business activity and house values. However, there has been a slight decline in the expected health of household finances over the next 12 months. This could reflect an increased expectation that the Bank of England will raise interest rates over this period.
“The latest increase in consumer confidence suggests that a rate rise from the Bank of England is approaching. Job security is on the rise on the back of improving pay, which should support strong growth in consumer spending,” said Scott Corfe, associate director at the CEBR.
“In step with this, workers say that they are being more productive. Home owners think property prices will continue to increase, and the housing market may start to overheat without a tightening of monetary policy. We think a rate rise in early 2016 is most likely.”