UK economy ‘set for rebound’ after increase in business and consumer confidence

The UK is set for rebound after business and consumer confidence rose to levels on par with those seen prior to the coronavirus pandemic in February 2020, according to the latest research.

The data was compiled by YouGov and the Centre for Economics and Business Research, which show that consumer confidence reached 105.4 in February 2021 – a level not seen since 12 months earlier.

Any score above 100 indicates that consumers are more confident than not, and the higher that score goes, the more confident consumers are.

This also follows the news that the events, leisure and hospitality sectors have seen a 250 per cent increase in bookings following the announcement of the Government’s ‘roadmap’ out of lockdown.

Economists are now predicting that with personal savings now at elevated levels, there is a significant level of pent-up demand that will boost the economy once those parts of the economy that are currently closed, re-open.

The rise in consumer confidence has also been driven by an increase in optimism over business prospects, with the business activity index rising by a record 5.4 points, while the index for job security in 2021 has risen to 112.2.

Kay Neufeld, Head of Forecasting at the Centre for Economics and Business Research, said: “The latest rise in the consumer confidence index underlines the resilience of households throughout this third national lockdown.

“With a road map for the gradual reopening of the economy now published, we expect the positive consumer sentiment to further aid in the recovery over the coming months.”