UK consumer
UK consumer confidence experiences dramatic uptick.Reuters

Consumer confidence in the UK has risen to levels not seen since the late nineties or early 2000s, according to the GfK/KPMG consumer confidence index.

The index has increased six points to 7 in June, with all its five components rising during the month.

"We're seeing a dramatic uptick in confidence this month, a real post-election bounce that's put a spring in the step of consumers across the UK," said Joe Staton, head of market dynamics at GfK.

"June's six-point jump takes the Overall Index Score back to levels not seen since the late nineties or early days of the noughties."

Across all key measures of the index, higher levels of financial optimism have been reported for both personal situation and for the general economy as a whole for the coming 12 months.

UK Consumer confidence
GfK

"This renewed optimism could also translate into a busy time for retailers. The number of shoppers agreeing that 'now is a good time for people to make major purchases such as furniture or electrical goods' has powered ahead by a buoyant 14 points this month compared to negative sentiment for the same period last year," Staton added.

The first index report since the general election means that high street shops, online sales and the leisure industry are heading to a strong summer. The industries had suffered, despite economic recovery, as cautious consumers stayed away from spending.

Index components

The index measuring changes in personal finances during the last 12 months has increased five points to 4 in June. The forecast for personal finances over the next 12 months has increased 2 points to 5 in June.

The measure for the general economic situation of the country during the last 12 months has increased 3 points to 4, while expectations for the general economic situation over the next 12 months have increased four points to 4.

The major purchase index has increased 14 points to 16 in June, as the savings index has risen 7 points to 4.