Consumer confidence improved in August following a post-Brexit slump the previous month, according to new figures.

GfK’s Consumer Confidence Index increased by five points this month to -7, with all five measures used to calculate the index showing increases.

“We’re reporting some recovery in the Index this month as consumers settle into the new wait-and-see reality of a post-Brexit, pre-exit UK,” said Joe Staton, head of market Dynamics at GfK.

“The uptick in confidence is driven by good news from hard data, the combination of historic low interest rates matched with falling prices and high levels of employment. This can be seen in positive growth across all major measures including both our Personal and General Economic situation for the next 12-months.”

The forecast for personal finances over the next 12 months increased by five points in August to +4, which is three points lower than last year.

Expectations for the ‘General Economic Situation over the next 12 months’ have increased 11 points to -22 this month, but this is 25 points lower than in August 2015.

The Major Purchase Index increased nine points this month to +7, which is 10 points lower than this time last year.

The UK Consumer Confidence Barometer is conducted by GfK on behalf of the EU. Interviewing of 2,000 people was conducted during the first half of August.

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