British consumer morale unexpectedly rose in August to match June’s 15-year high, as low inflation and a recent pick-up in wages made Britons more upbeat about their financial prospects.
Market research company GfK said its monthly sentiment index jumped to +7 in August from +4 in July, matching June’s figure, which was the highest since January 2000.
With inflation at zero, a gradual recovery in pay is giving some relief to workers who suffered an almost unprecedented loss of spending power during Prime Minister David Cameron’s first term.
“Rising house price inflation and improving employment growth prospects, combined with falling petrol prices and day-to-day living costs, as well as low interest rates, are translating into high levels of confidence across all major measures,” Joe Staton, head of market dynamics at GfK said.
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