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Shoppers back on high streets as they stop worrying about Brexit
Consumer confidence rises in August after post-referendum dip, says GfK, but pessimism remains about future
Shoppers are returning to the high streets as jitters caused by the EU referendum result subside, according to new data.
Market research institute GfK says its monthly measure of consumer confidence for the UK enjoyed its biggest rise since June 2015 this month – and was able to do so because it had slumped so very low after the decision to leave the EU.
Join more than 350,000 subscribers and keep yourself informed with a selection of The Week’s most interesting, enlightening and entertaining stories - plus daily puzzles.
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This means UK shoppers are "shrugging off the Brexit vote", says the Financial Times (FT). At -7, however, GfK's confidence measure is still well below its average monthly rate of -1.
The research agency also says its survey of "major purchases" rose by nine points, reflecting strong retail figures. At the same time, the agency's savings index dropped by 16 points, showing Britons do not prioritise "saving for tomorrow".
The drop in saving was "very much in line" with the Bank of England's decision to lower the interest rate, making putting money aside less attractive, said GfK's Joe Staton.
GfK attributes the increased confidence among British consumers to factors including recent "good news" about the economy suggesting it has not yet been badly hit by the referendum result, lower interest rates, falling prices and high employment.
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A YouGov survey last week found consumer confidence rebounded in August by its highest monthly rate since February 2013, says the BBC. Government figures showed that retail sales were up 1.4 per cent in July, compared to June.
While they have returned to shopping, British consumers remain troubled about their economic future post-Brexit, however.
Asked if they expected their "general economic situation" to improve or diminish in the coming year, most were pessimistic. GfK's sub-index for this aspect of consumer confidence fell by 22 points. In the same period in 2015, it rose by three.
GfK conducts its monthly survey on behalf of the European Commission, notes the FT, and questions 2,000 British consumers.
