News
Confidence rises in February
Consumer confidence increased in February and now stands at its highest level since January 2008.according to the Nationwide consumer confidence survey
The Expectations Index reached its highest level since records began, climbing six points in February to 115.
39% and those questioned believe the economic situation will be better in six months’ time, compared to 36% in January.
The proportion of consumers who think now to be a good time to buy household goods fell six points to 39% during the month.
Martin Gahbauer, Nationwide’s chief economist, said “following a small dip at the end of 2009, consumers have started this year in a more optimistic fashion with February’s figures showing a surge in confidence in the present and future situation.
A strong influencing factor behind this uplift is likely to be the news that the UK has come out of its longest recession on record following six consecutive quarters of contraction beginning in 2008.
By comparison, it would seem that consumers are perhaps feeling the pinch in their spending power as confidence declines in this area, and we may now be seeing the effects of the withdrawal of government driven incentives, such as the stamp duty holiday and lower VAT, impact on the index.
Consumer confidence is crucial to a strong and sustainable recovery and, while confidence is likely to remain fragile for some months to come, the early signs do look positive.”
Post a Comment on this News Article.