–UK Nationwide Mar Consumer Confidence 72 Versus 81 in Feb
–UK Nationwide Confidence Falls Back To December 2009 Level
–UK Nationwide Mar Expectations Index 105 Versus 116 in Feb
–UK Nationwide Mar Spending Index 96 Versus 94 in Feb
–UK Nationwide Expectations Index Lowest Since Aug 2009

LONDON (MNI) – UK consumer confidence fell back sharply in March,
having hit a two year high in February, with expectations leading the
way down, according to the latest Nationwide Consumer Confidence survey.

The Nationwide Consumer Confidence Index fell to 72 in March from a
revised 81 in February, matching its December reading. The expectations
index dropped to 105 in March from 116 in February, its lowest level
since August last year, with Nationwide suggesting uncertainty generated
by the looming May 6 may be hurting sentiment.

The survey showed consumers are gloomy about job prospects, despite
being relatively upbeat about the economic outlook.

In all 48% of respondents said there would be not many/few jobs
available in six months time, compared with just 25% saying there would
be many/some jobs available. This contrasted with the 31% predicting
there would be many/some jobs available six months ahead in the February
survey.

Only 16% thought the economic situation six months out would be
worse than today, with 33% saying it would be better and 48% the same.

The majority of consumers predicted no change in their household
income six months out, with 69% saying it would be the same, 11% lower
and 18% higher.

There was a slight pick-up in the proportion of consumers saying
now is a good time to purchase major goods, with 32% agreeing – compared
with 30% in February.

Martin Gahbauer, Nationwide’s chief economist, attributed some of
the weakness in consumer confidence to the upcoming election.

“With an election looming, more people will be unsure as to whether
they will be better or worse off in the coming months, and recent
concerns about the state of the economy and employment prospects could
still be playing on the minds of consumers,” he said.

“Perhaps unsurprisingly, the movements during March are not
dissimilar to the changes we saw in the run up to the 2005 election
where consumers appeared to be uncertain about the UK economy and
employment situation,” he added.

–London newsroom: 4420 7862 7491 email: drobinson@marketnews.com

[TOPICS: MABDS$,M$B$$$,MT$$$$]