Consumer confidence has improved in recent weeks as shoppers look to “loosen their purse strings”, according to a closely watched survey.
GfK, which carried out the poll, said there were signs buyers were feeling more confident, but also cautioned that cost of living pressures remained an important limiting factor on household spending.
The research group reported that its monthly Consumer Confidence Index was still in negative territory in November, but had increased by six points to -24.
It comes after GfK expressed “concern” the previous month as its Consumer Confidence Index fell nine points to -30.
The firm’s client strategy director Joe Staton said: “Although the overall score is still tracking firmly in negative territory, it is good to see that consumers are more optimistic about their personal financial situation.
“This shows people are thinking about their future with increased confidence and willingness to look beyond the short term.
“Despite the acute cost of living pressures, many would still like to loosen their purse strings just a little so they can enjoy that feelgood factor we all associate with the festive season.”
The survey also found that confidence in the general economy over the next year had increased by six points to -26, while its “major purchase index”, which measures confidence in buying big ticket items, leapt 10 points to -24.
Mr Staton said recent ups and downs in confidence had “underlined the nation’s topsy-turvy economic mood as encouraging news about falling inflation and wage growth is offset by high personal taxation, alongside costly fuel and energy bills.”
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The figures are likely to give some encouragement to retailers as they head into the crucial Christmas period. However concern over the impact of interest rates and inflation on households this year remain.
Linda Ellett, UK head of consumer retail and leisure for KPMG, said: “Four in 10 consumers that KPMG surveyed said that the higher cost of living will require them to spend less on Christmas gifts this year.
“Even those spending the same amount as last year may well find that it equates to less volume due to the impact of inflation.
“Retailers are competing for this shrinking spend, with over a third of consumers telling us they are spending more time now searching for the best-priced goods.
“Whether it be Black Friday, Christmas, or generally, consumers are watching prices and looking out for genuinely good promotions and discounts.”