GfK: Consumer confidence returning

However, concerns remain over job security and major purchases
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Confidence is returning to the High Street after it hit an all time low in 2008, but GfK has warned that it remains fragile due to lingering concerns over job security.

The GfK NOP Consumer Confidence Index rose two points during June and was up nine points on the same time last year, according to the analyst's figures. Confidence also rose in the general economy during the month, both in terms of the year-gone and the year-ahead.

Major purchases, however, are still suffering due to an adverse climate for large financial outlays. But, despite a drop of four points from last month, the index is still nine points higher than June 2008.

"After a pause last month, Consumer Confidence once more returned to growth and is now up 14 points from its all time low of last year," commented GfK NOP's Rachel Joy.

"Confidence, however, remains fragile, as uncertainty about the strength of any recovery and an increase in unemployment all mean that consumers continue wary. Indeed, there was an firm decline in those agreeing that now is a good time for making any major purchases."