GfK NOP Ltd, one of the leading market research and consumer insight agencies, said that for the first time in four months UK consumer confidence increased in September as Britons became more optimistic about the economic outlook and spending.

The London-based research group, GfK NOP Ltd, reported today that an index of sentiment gained 1 point from August to minus 30. The agency said that a measure of households’ anticipations for the economy over the coming twelve months climbed 4 points to minus 27, and a gauge of households’ assessment of whether this is a time to make major purchases climbed 3 points to minus 28.

GfK Managing Director Nick Moon said that despite growing fears about the world economy, UK consumers are feeling a little more confident about the state of the home economy. Moon said that with economic growth successfully stalled now, retailers would welcome more high street activity.

The GfK said that while the boost is not statistically significant, it is psychologically important as it stops a recent decline in sentiment. Still, the policy makers of the central bank of UK have indicated they are becoming more concerned that the recovery will cool further, and most of them said that this month they see expanding stimulus as more and more probable.

This September’s confidence increase still leaves them 10 points lower than the same month of last year. Yesterday, a European Commission report showed UK household sentiment declined in September.

This year’s confidence of Britons has been undermined by inflation that is almost double wage growth and the largest government budget squeeze since WWII. The Confederation of British Industry said  last Tuesday that a retail-sales index dropped to its lowest level in 16 months in September, as consumers cut back spending on clothes and groceries.

GfK said that a gauge of Britons’ view of their personal financial condition over the next 12 months rose 1 point to minus 10, while a measure of their view of the UK economy over the past year slipped 1 point to minus 58 in the month of September from August.

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