4
Mar
UK consumer confidence 'climbs'
Confidence among UK consumers rose moderately in February
despite the weakening economic conditions, according to the
Nationwide. Its Consumer Confidence Index rose by 2 points to 43 in
February, recording its first rise since last October. The survey
of 1,000 consumers showed that they became more optimistic about
the future economic conditions. At the same time, confidence in the
present situation fell for the eighth consecutive month in
February. 'The spate of bad economic news and reported job losses
in major industries may have dampened consumers' perceptions of
where we are now,' the report said.
Nationwide's Present Situation Index declined to 22 points in
February from 24 in January, while its Expectations Index rose to
57 from 52 and its Spending Index increased to 92 from 85
points.
'Encouraging'
Meanwhile, only 16% of consumers think that now is a bad moment to
buy goods like fridges and hi-fis, which could be a result of the
significant discounts available, the Nationwide said. 'In addition,
more consumers think it's a good time to make a major purchase.
Falling house prices and bigger discounts on new cars may well have
affected this, but it remains to be seen how quickly this sentiment
will lead to larger numbers of transactions given the current
economic conditions,' it said.
The CBI business organisation said last week that retail sales
had fallen in February, but the rate of decline had slowed.
According to official figures, UK retail sales rose 0.7% in January
compared with December, and by 3.6% compared with January 2008 due
to big price cuts.
Fionnuala Earley, Nationwide's chief economist, said:
'Consumers' views about the current economic and labour market
conditions are in line with the recessionary climate in the UK.
'However, their increased optimism about the future is
encouraging.'
comment from bbc.co.uk/news Wednesday 4th March 2009.