LONDON (MNI) – UK consumer confidence moved up in November from the
series’ low hit in October, but is still at exceptionally low levels,
according to the Nationwide survey.
The survey found consumers were a little more likely to spend and
more upbeat about employment prospects and household income, but all
these indicators remained at depressed levels. The headline Nationwide
Consumer Confidence Index rose to 40 in November from 36 in October.
The 40 outturn was 37 points below the series’ long run average of
77 and seven points down on the year.
The Nationwide survey found the November Present Situation Index
unchanged from October’s at 18, while the Expectations Index rose to 55
from 48 and the Spending Index rose to 77 from 75.
The Spending Index was bolstered by consumers’ greater willingness
to make household purchases but they are wary of making major purchases.
The percentage of consumers saying now is a good time to make a major
purchase rose by just one percentage point to 25%.
The proportion of consumers who believe now is a good time to
purchase household goods climbed by five percentage points in November
from October to reach 30%.
Commenting on the survey, Robert Gardner, Nationwide’s Chief
Economist, said “The small rise in consumer confidence recorded in
November can hardly be described as festive cheer, but at least
confidence has moved off its all time lows in the run up to Christmas.”
Economic research suggests confidence indicators are a far from
reliable guide to consumption and related economic activity, but low
confidence levels do continue to crop up in comments from Bank of
England Monetary Policy Committee members.
“The role and information content of confidence indicators is
small, and policy makers should be wary of reading too much into them
when evaluating short-term prospects for the future,” the National
Institute for Economic and Social Research concluded in one paper.
–London newsroom: 4420 7862 7491 email: drobinson@marketnews.com
[TOPICS: MABDS$,M$B$$$]
