Consumers look to brighter future for economy
Wednesday, 03 March 2010 10:27
By myfinances.co.uk staff
Consumers are increasingly confident of an improvement in economic and employment conditions over the coming months, according to a new survey by Nationwide.
The Expectations score of its Consumer Confidence Index hit 115 points in February, more than double the score of 56 recorded a year earlier and the highest figure since the index launched in May 2004.
Almost four in ten (39%) of those surveyed said economic conditions will have improved in six months' time, up three per cent from January.
Some 88% of respondents expected household income to have improved by the summer, up two per cent on January.
Nationwide's Present Situation Index was also higher last month, reaching 93 points, the highest score since December 2008.
The company's senior economist Martin Gahbauer said the general improvement in consumer sentiment was partly down to the end of the recession following six quarters of contraction - the worst run on record.
"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," he added.
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