Consumer confidence in the UK has reached its highest level in two years as optimism for the coming 12 months strengthens, according to a long-running survey.
GfK's consumer confidence index rose by three points to minus 19 this month - its best headline score since January 2022.
Confidence in personal finances gained two points and now stands at zero, ending 24 consecutive months of negative scores and "the best single indicator for how the nation's households feel about their income and expenditure", GfK said.
Expectations for the general economic situation over the next year have increased by four points to minus 21 – 33 points higher than last January.
Meanwhile, the major purchase index, a measure of confidence in buying big ticket items, is up three points to minus 20 – 20 points higher than a year ago.
Joe Staton, client strategy director at GfK, said: "Consumer confidence has started the year well with all measures up and a headline score of minus 19, the best since January 2022.
"Despite the cost-of-living crisis still impacting many households across the UK, consumers appear to be encouraged by the positive news about falling inflation."