By Claire West

According to the September Consumer Confidence Monitor very weak household finances are holding confidence back.

Despite the huge boost to the national spirit from the Olympics / Paralympics there is no escape from financial reality.

The back to school spring in the step has quickly been replaced by the feeling of financial uncertainty.

As expected there was a slight uplift in consumer confidence by 1 point to -28, its best level since June 2011 on the back of gains in the measures of the expected state of personal finances in the next 12 months (up 2 points) and a 4-point rise in the current economic situation compared to 12 months ago.

All the 3 other measures — current financial position compared to 12 months ago, the expected economic situation 12 months hence and the spending climate measure for making purchases of household goods are unchanged.

The Misery Index — covering inflation and unemployment expectations in the next 12 months — retreated from its 30- month high in August. Unemployment expectations continue to improve but this month inflation expectations fell back to their worst since April.

Spending confidence is little changed while savings confidence is weaker.