Confidence 'still low' despite jump

01/02/12

By Dan Morgan

Recent falls in energy prices and declining inflation have done little to inspire consumer confidence, according to new research.

The study, carried out by market research firm GfK NOP, revealed that despite a four-point rise in confidence over the New Year period, confidence remains at -29 points.

The surprise four-point spike has been attributed to slight improvements in the economic outlook for 2012, but was unexpected due to the 0.2 per cent drop in UK GDP announced for the final quarter of 2011.

Other factors revealed in the survey included the suggestion that the jump in confidence could be a hangover of festive feeling after the Christmas period.

Commenting on the study, GfK NOP's managing director, Nick Moon, said: "Consumer confidence is still seriously depressed and we should treat this month's modest improvement with caution.

"Should February show another rise then we may be seeing signs that the gloom is dispelling. Until then we should treat January's findings as good, but certainly not great, news."