Financial confidence grows to three year high - Economy - News - Moneyfacts


Financial confidence grows to three year high

Financial confidence grows to three year high

Category: Economy

Updated: 18/06/2013
First Published: 18/06/2013

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The public's perceptions and confidence in the economy over the next twelve months has grown to the highest level since 2010, according to a new report.

Expectations amongst UK households improved for the fourth consecutive month, with 26% of respondents stating that their finances had taken a turn for the worse so far this month, compared with 28% during May.

Around 8% of households reported an improvement to their current financial situation.

Homeowners who own their property outright were found to be the least pessimistic about the economy, whilst confidence amongst people paying off their existing mortgages rose to the highest level since February 2009.

Recent reports of increased growth and improved activity in the mortgage market is believed to have boosted expectations amongst consumers.

The British Chambers of Commerce (BCC) last month upgraded its growth prediction for the UK economy, increasing its original forecast of 0.6% to 0.9%. Mortgage lending has consistently increased over the past few months, as borrowers seek to take advantage of record low mortgage rates under the Government's Funding for Lending Scheme.

Senior Economist at Markit, Tim Moore, said: "Improving household finance trends are an early indication that the UK economy has continued to strengthen in June.

"Households' perceptions of financial stability are now at a level unsurpassed over the past four-and-a-half years," he said.

What next?

Mortgage calculator
Credit Card Search – find the best credit card for you

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Base rate remains unchanged in surprise decision

Earlier today, the Bank of England’s rate setting committee announced that it had voted decisively to keep base rate on hold at its record low of 0.5%. But what does it mean for you?

Budget 2016 – an overview

Well, George Osborne has just revealed the Budget for 2016 – his eighth so far as Chancellor – and as ever, there were some winners and losers from the whole thing. Below is a quick overview of the key points.

What does a US Fed rise mean for the UK?

The US Federal Reserve has decided to raise interest rates, and although you may not think that financial events happening in the US will have much of an impact on UK soil, you may be surprised…