A new survey reveals that consumer spending is at the highest in over a decade since Boris Johnson's decisive election victory. A poll by IHS Markit showed households' optimism over their finances and the economy increased in February to the highest point since the survey records began 11 years ago. The IHS Markit household finance index, which measures Britons' perceptions of financial well-being from 1,500 survey responses compiled by the pollsters Ipsos Mori, rose to 47.6 this month from 44.6 in January.
The index has not exceeded 50 in the decade, a level that indicates improving conditions. The new figures suggest conditions facing families in Britain have become less challenging. The future household finance index, which measures expected changes in financial health over the next 12 months, rose from 49.6 to 52.7 surpassing the previous peak in January 2015.
The improvement could pave the way for an increase in consumer spending after one of the toughest years for high street retailers. Meanwhile, retail sales failed to rise for a record fifth month in a row in December, the longest period since 1996, as household spending fell by 0.6 per cent on the month. IHS Markit said households showed a lower degree of pessimism about job security in February.
An IHS Markit economist said the poll showed a rise in optimism about the country's immediate economic prospects.
