UK consumer confidence hits pre-crisis levels of 2006

Upbeat tone of the Nielsen survey underpinned by improving job prospects and low inflation

UK consumers are at their most upbeat for nine years on the back of improving job prospects and low inflation, according to the latest report to suggest spending power is recovering.

Consumer confidence rose for the fifth successive quarter in the opening months of this year to hit its highest level since the pre-crisis days of 2006, according to market research company Nielsen. The proportion of people feeling now was a good time to spend was also up; at 45%, it was the highest since comparable records began in late 2006.

Retailers will be encouraged to see growth in sales and orders on the high street bounding ahead. Low inflation, which we expect to remain below 1% for the rest of the year, has given household incomes a much-needed boost and greater spending power.