U.K. July Consumer Confidence Soars to Three-Year High

U.K. consumer confidence rose to the highest in more than three years as Britons’ optimism about the economic outlook improved.

A consumer sentiment index by GfK NOP Ltd. rose 5 points to minus 16, the highest since April 2010, the London-based group said in a report published today.

The economic recovery gained traction in the second quarter as gross domestic product growth accelerated to 0.6 percent. Bank of England policy makers meeting tomorrow will probably maintain stimulus levels as they consider introducing forward guidance to cement the expansion.

“There is now no doubt that consumer confidence has recovered strongly from the unparalleled trough of the last five years,” Nick Moon, managing director of social research at GfK, said in the report. “The current trend is definitely upwards.”

GfK’s measure of people’s assessment of the general economic situation in the next 12 months rose 7 points to minus 9. A gauge of their optimism about their own finances in the same period rose 7 points to 0.

An index of sentiment about the general economic situation over the past 12 months rose 7 points to minus 35, and a gauge of personal finances over the same period rose 5 points to minus 16. A measure of the climate for making major purchases fell 1 point to minus 21.

GfK interviewed 2,004 people from July 2 to July 21. The poll has a margin of error of plus or minus 2 percentage points.

To contact the reporter on this story: Jennifer Ryan in London at jryan13@bloomberg.net;

To contact the editor responsible for this story: Craig Stirling at cstirling1@bloomberg.net

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