UK consumer confidence staged an end-of-year rally, according to the closely-watched survey from market research firm, GfK.
The report showed a six point rise in the headline score in November despite ongoing cost-of-living concerns which is good news for retailers on Black Friday and as the key festive season approaches.
GfK said its Consumer Confidence Index increased to negative 24 in November from negative 30 in October, with all five measures higher in comparison to last month’s announcement.
Joe Staton, client strategy director GfK, said: “Recent ups and downs in confidence have underlined the nation’s topsy-turvy economic mood as encouraging news about falling inflation and wage growth is offset by high personal taxation, alongside costly fuel and energy bills.”
“Although the Overall Index Score is still tracking firmly in negative territory, it is good to see that consumers are more optimistic about their personal financial situation,” he said.
He highlighted a "dramatic” 10-point jump in the major purchase sub-measure, reversing some of the “worrying” 14-point drop last month, which he felt would be good news for retailers looking to benefit from Black Friday and Christmas.
Gabriella Dickens at Pantheon Macroeconomics expects confidence will continue to strengthen, as real disposable income picks up, supported by a further period of catch-up growth in real wages and an easing drag from mortgage refinancing.
She thinks "at the margin", the two percentage point reduction in the main rate of National Insurance contributions in January, which will boost aggregate disposable income by about 0.5%, also likely will bolster sentiment.