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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 It is now over 6 months old so the content may be out of date.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.

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