Consumer confidence in the UK improved again in the third quarter according to insight firm Nielsen; marking a third consecutive rise of three points.
The UK Consumer Confidence Index hit 93 in the third quarter of 2014, a high point last seen in the same period of 2007.
Despite the improvements there is still some way to go however as a score below 100 indicates pessimism and one above it indicating optimism.
An improving situation
Essentially, this latest score suggests customers are less pessimistic than they were with the run up to Christmas likely to boost sales and confidence further.
The last time the score was so high, Gordon Brown was Prime Minister, Leona Lewis was number one in the charts with Bleeding Love, and MySpace was more popular than Facebook.
It highlights how things have changed in the UK with people also more confident about their job prospects – up 41% to reach the highest score recorded since 2007.
More than half of the people surveyed still believe that the country is in recession despite the economy being one of the quickest growing in the developed world.
Confidence expected to increase further
Things are moving in the right direction and improved confidence will likely see consumer spending also increase in the final quarter of the year.
The run up to Christmas is traditionally a time when spending increases across most sectors but this is not without risks. Financial management remains important as it is essential that money is available to cover bills and other living costs.
This is highlighted by the fact 60% of shoppers are buying cheaper groceries in order to save while any spare cash is being set aside for savings in the majority of cases.
These cost-saving tactics might not necessarily portray a positive picture of consumer confidence but it does mean that people are at least aware of the economic situation.
Slow improvements in living standards will drive confidence and spending up further and this is expected to boost sales growth during the remainder of 2014 and into 2015.
Financial management is extremely important so keeping spending in check with a prepaid card is a great way of ensuring you don’t spend more than you would like.
A prepaid card limits spending to the amount on the card at any given moment and is not directly linked to a bank account making funds safer. The cards can easily be topped up or replaced if required while accounts can be checked regularly online if needed.