–UK Nationwide Oct Consumer Confidence 52 vs 53 in Sep
–UK Nationwide Oct Expectations Index 70 vs 74 in Sep
–UK Nationwide Oct Spending Index 92 vs 86 in Sep

LONDON (MNI) – Consumer confidence is only edging lower, according
to the Nationwide’s survey for October.

The Nationwide Consumer Confidence Index last month fell just one
point to 52 from 53 in September, with the fall being driven mainly by a
drop in the expectations index which fell to 70 from 74 in the previous
month.

But the index has now fallen in five out of the last six months and
stands 32 points below its interim peak of 84 seen in February of this
year.

The strong fall in expectations was offset by a rise in the present
situation index and in the spending index, with the latter rising to 92
from 86 in September.

The main driver behind this rise was greater optimism towards
making a major purchase such as a house or car, according to Nationwide.
Improved sentiment towards spending mirrored the news that has been
coming from retailers as high street sales continued to grow in the
second half of this year, Nationwide added.

The Spending Index recovered some of the ground lost in September
with an increase of six points to 92

Nationwide welcomed the signs of stabilisation but cautioned that
consumers retained an underlying pessimism, noting that optimism levels
remain well below long-run averages.

Consumers expressed a growing pessimism towards the housing market
in October and now expect the value of their home to decrease by 0.9%
over the next six months. This compares to an increase of 0.1%
predicted in September.

Martin Gahbauer, Nationwide’s chief economist, said:

“There was little change to overall confidence during October,
which may have been a result of consumers waiting to see what the
Government’s Spending Review would bring. We saw a significant drop in
confidence the previous month, and the underlying anxiety around the
strength and direction of the recovery appears to remain.”

“However, on a positive note, there are signs this month that some
faith has returned in relation to the present situation and consumers’
propensity to spend in the run up to Christmas,” he added.

–London newsroom: 4420 7862 7492 email: wwilkes@marketnews.com

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