Consumer confidence jumps despite 'no deal' Brexit worries

Customers maintained a sunny disposition through August as consumer confidence rose by three points in the month, according to the GFK confidence index.

The rise, which saw consumer confidence rise to a three-month high of -7, comes despite concerns over the possibility of a 'no deal' Brexit leading consumers' assessment on the outlook for the economy to remain at -26, well below the long-term average of -13.

Consumer confidence in personal finances meanwhile improved by a point to +8, with consumers set to receive a boost due to a gradual rise in real earnings growth.

Joe Staton, GfK's client strategy director, said: "We are just months away from the Brexit crunch but there is no sign - yet - of any crash in consumer confidence. The core index continues to muddle along in negative territory, but Armageddon seems a distant prospect."

August’s figure was more positive than analysts' expectations but marked the 31st consecutive month of consumer confidence sitting at zero or sub-zero.

"While this is a welcome improvement, we would be cautious in reading too much into a single month’s figures. For a start, the balance has fluctuated within a narrow range of -7 to -10 since the start of the year, and the rise in August took it only slightly above the series’ long-run average of -8," GfK said in a statement.

The statement added that consumers appeared to be adopting a 'wait and see' attitude to Brexit, with a rise in confidence and acceleration of consumer spending growth likely in the new year if a deal is successfully reached.