UK GfK consumer confidence hits 14-mth high in June

British consumer morale improved in June to its best in 14 months as people became confident their own finances would improve for the first time in more than a year, a survey showed on Tuesday. The GfK/NOP consumer confidence index rose to -25 in June from -27 in May — the highest since April 2008 and in line with analysts' forecasts.

The index, while showing that people remain deeply gloomy as Britain suffers its deepest downturn in decades, has been improving in recent months and is now 9 points higher than a year ago.

All but one of the five sub-indices rose this month, and the index gauging people's feelings about their personal finances over the next 12 months rose two points to +1, its highest since March 2008.

A string of recent data have suggested that Britain may already be pulling out of recession, but unemployment is still rising fast and policymakers have warned that it could be a long, hard slog to recovery.

Tuesday's survey showed that while Britons are feeling less gloomy about the prospects for the UK economy as a whole over the coming year, they have become less inclined to splash out on major purchases, with that index down 4 points from May to -26.

"Confidence still remains fragile as uncertainty about the strength of any recovery and an increase in unemployment all mean that consumers remain wary," said Rachael Joy at GfK/NOP.