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Index shows improvement in the feelgood factor
Consumer confidence rose for the first time since the general election during August as people felt more optimistic about the economic recovery.
The Nationwide Consumer Confidence Index jumped by five points in the month to 61, following three consecutive months during which confidence had fallen.
The rise was driven by an improvement in people's expectations of the state of the economy and employment market going forward.
The group's expectations index rose by seven points during the month, as the number of people who thought the economic situation would be good in six months' time increased by 3 pet cent to 26 per cent.
There was also a 3 per cent fall in the proportion of people who thought there would not be many jobs available going forward. But the present situation index, which measures people's perception of the current economic situation, edged ahead only slightly during August, rising by one point to 27.
Mark Saddleton, Nationwide's head of economic and market analysis, said: "Consumers expressed greater optimism during August causing the index to recover some of the ground lost since its interim peak in February. It may be that the recent dip was a product of increased caution following the general election as consumers assessed what direct impact a change in Government and new austerity measures would have on their individual circumstances.
"While there is still a long way to go before it can be said that confidence has returned, these figures are an encouraging sign that consumers may be starting to feel more upbeat as the UK continues to re-cover from its deepest recession since the Second World War."
But he added that speculation over Government spending cuts, a difficult jobs market and a "stuttering" housing market were all likely to place downward pressure on confidence.
People's attitude towards spending improved during August, with 30 per cent saying they thought it was a good time to make a major purchase, up from 25 per cent in July, while the proportion who thought it was a good time to purchase household goods remained unchanged at 40 per cent.
But following a recent run of negative data on the property market, consumers are feeling downbeat about the prospects for house prices.
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Thursday 24 May 2012
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