Confidence recovers ground during August
The main findings were that confidence is up for first time since April, rising by five points during August after falling for three consecutive months. The Expectations Index saw the biggest increase in August, rising by seven points as consumers’ faith in the present situation continued its steady path upwards.
Spending confidence has risen by four points,reversing the fall seen in July.
Mark Saddleton, Nationwide’s head of economic and market analysis, said,'consumers expressed greater optimism during August causing the index to recover some of the ground lost since its interim peak in February. It may be that the recent dip was a product of increased caution following the General Election as consumers assessed what direct impact a change in Government and new austerity measures would have on their individual circumstances. The main driver behind the increase in August has been an uplift in confidence towards the future situation, in particular consumer expectations of future economic circumstances. While the indicators suggest the outlook may be starting to look a little brighter, faith in the present situation remains at a low level and growth in this area will play an important role in the strength of any recovery in confidence in the coming months.”
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