Consumer confidence rose in Britain to the highest level in 11 years

Consumer confidence in Britain rose in February to its highest level in more than a decade after the decisive victory of Boris Johnson in the local elections, reports The Guardian.

a Survey by IHS, Markit pointed to rising optimism of households about the state of their finances and the economy of the country in February to the highest level since the beginning of such studies 11 years ago.

household Finance Index, IHS, Markit, which measures the perception of the British financial well-being and affects 1,500 respondents, rose to 47.6 this month from 44.6 in January.

In the decade after the financial crisis, the index did not exceed the figure of 50 points which reflects the improving financial conditions. New data show that the conditions faced by families in Britain have become less complicated.

the Index of the future financial state of UK households, which measures the expected change in financial situation over the next 12 months, up from 49.6 points to 52.7 points, exceeding the previous high in January of 2015.

Improvements in the survey, which became an early warning about the state of the economy can lead to growth in consumer spending after one of the worst years for UK retailers.

Retail sales has not grown for a record fifth straight month in December — the longest period since 1996, as household spending fell by 0.6% compared with the previous month. Several retailers, including John Lewis and Marks & Spencer, have reported disappointing trade data in the main holiday season.

IHS, Markit said in February of households showed a lower degree of pessimism about job security. Expectations about the cost of living has also improved due to low official inflation rates in recent months. The perception of housing prices also increased, the strongest pace in nearly three years.

Joe Hayes, IHS economist at Markit, said the survey showed rising optimism about the immediate economic prospects of the country.