Consumer confidence at six year high

Consumer confidence has surged to its highest level in six years as Britain's recovering housing market helps drive optimism.

Households' willingness to spend is also at a six-year high, consultancy Nielsen's survey of consumer confidence and spending intentions showed.

Consumer confidence rose eight points to 87 in the July to September quarter, Nielsen said, its highest level since the third quarter of 2007.

The increase in UK household optimism was the joint fourth-highest among 60 countries.

Positivity on job prospects was at a five-and-a-half-year high, while optimism around personal finances was its strongest for six years.

Britain's housing market is recovering as Government stimulus schemes drive prices higher and boost mortgage approvals.

The survey showed rising utility bills were the only main concern to increase on the prior quarter, and are now the first or second-highest worry for 31% of UK households, up from 27% during the second quarter.

Energy giants RWE npower, British Gas, ScottishPower and SSE have all announced major price hikes in recent weeks of around 8-10%.

Chris Morley, Nielsen managing director for UK and Ireland, said: "UK consumers have become more savvy shoppers over the last three years.

"By shopping differently, they have weathered the storm of rising household costs and falling real-term wages. Throughout this period, British consumer confidence remained stubbornly weak, but in recent months it has finally taken an upward turn as the green shoots of economic recovery start to show.

"Positive news around momentum in the UK housing market has added to the change in mood. Looking ahead, many UK households still intend to spend carefully should economic conditions improve, so we anticipate a continuation of great offers for shoppers, and that leads us to forecast an easier ride for UK consumers over the next three years."

The survey was conducted between August 14 and September 6 and polled more than 30,000 consumers globally.