LONDON (MNI) – Consumer confidence hit a nine-month high in March
despite challenging economic conditions, according to the latest
consumer confidence survey from Nationwide.
The main confidence index rose by nine points to 53, seven points
higher than a year ago but 23 points below its long run average of 76,
suggesting that households remain cautious when it comes to spending.
The sub-indices show that sentiment towards spending on household
goods rose and a slightly lower proportion of people expressed
reservations about making major purchases.
Commenting on the data, Robert Gardner, Nationwide’s chief
economist, said that the economic environment remains tough despite the
apparent rise in confidence.
“With the economy expected to gather pace only slowly, the
improvement in confidence may prove short-lived,” Gardner said.
“Indeed, the sharp falls in inflation seen at the start of the year
are unlikely to be repeated in the near-term, with inflation likely to
fall back towards the 2% target only slowly. As a result, the easing
price pressures will be less visible to households in the months ahead
than at the start of the year,” he added.
–London bureau: 44 20 7862 7491; email: ukeditorial@marketnews.com
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