British consumer confidence reaches six-month high
The mood of British households brightened during April as consumer confidence lifted to its highest point in six months, figures revealed.
Research by GfK NOP on behalf of the European Commission showed that consumer confidence rose two points in April, from minus eight to minus six, as the warm weather, the new tax year and a pleasing Budget lifted UK sentiment.
However, economists warned that the results may be distorted as the research was carried out before the release of figures which showed a jump in inflation for March to 3.1%, fuelling expectations of a May rate hike.
Global Insight's Howard Archer said: "It is notable that the April survey was completed before expectations of higher interest rates were lifted by news that consumer price inflation jumped to 3.1% in March.
"The increased likelihood that interest rates will not only rise to 5.5% in May but could well rise further thereafter will likely be a source of significant concern to many consumers and is likely to weigh on sentiment."
