Consumer Confidence Hits '15-Year High'

Consumer confidence is at a level not seen since the turn of the millennium, as pay growth accelerates and inflation remains low, according to a monthly survey.

The findings of the GfK confidence barometer suggested appetite was growing for so-called 'big ticket' items, such as TVs and sofas, as people began to feel the benefits.

The most recent figures put the annual rate of inflation at 0.1% and pay rises at 2.7%.

Joe Staton, Head (Other OTC: HEDYY - news) of Market Dynamics at GfK, said: "We’re seeing a dramatic uptick in confidence this month, a real post-election bounce that’s put a spring in the step of consumers across the UK.

"Across all key measures we’re reporting higher levels of financial optimism for both our own personal situation and for the general economy as a whole for the coming 12 months.

"This renewed optimism could also translate into a busy time for retailers. The number of shoppers agreeing that 'now is a good time for people to make major purchases such as furniture or electrical goods' has powered ahead."

That is welcome news for Carpetright - which was among a crop of firms that struggled to secure business from consumers amid the squeeze on spending.

The specialist flooring retailer reported a profit before tax of £6.6m for the 53 weeks to 2 May following a loss of £7.2m in the previous year.

The company, which has a reduced portfolio of 460 stores in the UK as it continues to trim higher lease bills, said like-for-like sales rose 7.3% in the period following a fall of 0.2% in 2013/14.

Underlying UK profits were up 33.6%.

Its stores across the rest of Europe enjoyed slight sales growth following falls of more than 8% in the previous year.

The company also said it had seen an "encouraging start" to the new financial year, with like-for-like sales already 4.9% ahead in the UK and 7.4% in the rest of the business amid efforts to turn around its fortunes.

It has been focussing on a strategic plan to revitalise the business, including an improved customer experience and drive to secure value.

Chief executive of Carpetright (LSE: CPR.L - news) , Wilf Walsh, said of the results: "I am pleased to able to report on a year of significant progress.

"The group has delivered substantial growth in profit, strong and consistent like-for-like sales growth in the UK, a return to profit in the Rest of Europe and a net cash position at the end of the period.

"While this is just the beginning of the journey to transform Carpetright, we have a clear direction and the positive results we are seeing from a number of our initial activities give us confidence that we are on the right path."