Consumer confidence reaches three-year high - Money - News - Moneyfacts


Consumer confidence reaches three-year high

Consumer confidence reaches three-year high

Category: Money

Updated: 22/07/2013
First Published: 22/07/2013

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 It is now over 6 months old so the content may be out of date.

A study has found consumer confidence and optimism climbed to the highest level since November 2010, prompted by increased activity in the housing market and better than expected economy growth.

According to the latest Lloyds TSB Consumer Sentiment Index, the volume of people who perceive the UK's economic situation as 'not at all good' fell by two percentage points from 41% in May to 39% in June this year.

Confidence in the housing market was seen to have improved as buyer activity increased and mortgage rates dropped to record levels with optimism in the future of the housing market buoyed by various Government schemes such as Help to Buy and FirstBuy.

The percentage of respondents who believe the housing market is 'not good' or 'not at all good' reduced during June by two percentage points to 69%. Around 27% believe it to be 'somewhat good', reflecting the highest level since the study began in November 2010.

Consumers remained optimistic about their own personal finances, with 54% describing their current situation as 'excellent, good or somewhat good'.

Young people were found to be the most happy with their ability to save money on a regular basis, with 60% of those aged between 25-34 stating they were in an 'excellent, good or somewhat good' position compared with 46% of 45-54 year olds.

Patrick Foley, chief economist at Lloyds TSB, said: "As the outlook for the UK economy gradually improves, firming consumer confidence remains vital to a self-sustaining recovery.

"More positive sentiment is therefore good news and, supported by greater stability in households' essential spending, should embolden consumers still further. But areas of pressure still remain, notably on energy bills, acting to restrain the improvement in spending power."

What next?

Save up to £331 by switching your energy tariff
Compare the best savings rates
Mortgage repayment calculator
How much can you borrow calculator

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 Any products featured may be withdrawn by their provider or changed at any time.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

Parents to spend £552 on children this half term

Autumn has truly arrived – and half term with it. This looks to be bad news for parents’ wallets, as research from American Express shows they will be spending an average of £276 per child this holiday break.

Are you still funding your children’s lifestyle?

While many parents like to provide financial support to their children while they grow up, often helping out with things like weddings, cars and university fees, others find that they fund more of their children’s lifestyle than they’d like.

Household spending on Christmas drops again

Brace yourselves: tomorrow we’ll be just 70 days away from Christmas. As 39% of Brits have already started their holiday shopping, research has found that household spending on Christmas has fallen for the second year in a row.