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Confidence on the up

Confidence on the up

Category: Money

Updated: 06/05/2009
First Published: 06/05/2009

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
Consumer confidence is on the rise, with the latest research revealing April witnessed the largest single monthly increase for almost two years.

Expectations saw its biggest rise since May 2007, a trend that likely reflects the feeling from UK consumers that the economic decline is beginning to ease.

The present situation index increased for the first time since June last year, the Nationwide's Consumer Confidence Index showed.

The spending index also showed a small increase, although it is clear that feelings of optimism about the present time are more guarded.

"In recent weeks, we have seen a strong rebound in global equity markets and some tentative signs of improvement in the housing market indicators, both of which may have contributed to the marked upturn in consumer confidence during April," said Martin Gahbauer, senior economist at the building society.

Research also showed over a quarter of people questioned said they believed the economic situation will be better in six months' time – a six month high. Furthermore, the percentage of those who thought the situation will be worse dropped by almost a quarter.

Gahbauer warned, however, the UK economy is likely to continue to contract for the foreseeable future, making it too early to say whether the rise in confidence will continue into May.

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