Posted: Wed Oct 03, 2007 10:58 am
UK consumer confidence 'rebounds'
Consumer confidence in the UK recovered in September, despite recent market jitters, a Nationwide survey suggests.
The building society's monthly consumer confidence index rose five points to 99 - after hitting the lowest level in four months in August.
But most responses pre-dated the Bank of England's move to provide Northern Rock emergency funding, a signal of the wider credit crisis.
Nationwide said the run on the bank may have dented confidence in the economy.
Job confidence
The Nationwide survey found consumers were notably buoyant about employment.
Of those surveyed 60% said their outlook regarding jobs was positive. Overall 45% said they were feeling confident about the state of the economy.
People were also more optimistic about what the economy would look like in six months' time.
"The pick-up in confidence has been largely driven by confidence in the labour market," said Fionnuala Earley, Nationwide's chief economist.
"When people feel secure in their employment, it is perhaps not surprising that their general confidence levels are more robust."
'Lasting effects'
Whether consumer confidence can be maintained depends on whether the recent credit crisis has an impact on the wider economy, Nationwide said.
"Early indications suggest that consumers may have been more affected by the initial run on Northern Rock, but any lasting effects will be dominated by the impact of recent events on the real economy."
Following the recent turmoil, expectations that the Bank of England would continue to raise interest rates, currently at 5.75%, have been dampened down.
Analysts are now speculating that the Bank may cut rates before the end of the year.
Source: bbc.co.uk
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Consumer confidence in the UK recovered in September, despite recent market jitters, a Nationwide survey suggests.
The building society's monthly consumer confidence index rose five points to 99 - after hitting the lowest level in four months in August.
But most responses pre-dated the Bank of England's move to provide Northern Rock emergency funding, a signal of the wider credit crisis.
Nationwide said the run on the bank may have dented confidence in the economy.
Job confidence
The Nationwide survey found consumers were notably buoyant about employment.
Of those surveyed 60% said their outlook regarding jobs was positive. Overall 45% said they were feeling confident about the state of the economy.
People were also more optimistic about what the economy would look like in six months' time.
"The pick-up in confidence has been largely driven by confidence in the labour market," said Fionnuala Earley, Nationwide's chief economist.
"When people feel secure in their employment, it is perhaps not surprising that their general confidence levels are more robust."
'Lasting effects'
Whether consumer confidence can be maintained depends on whether the recent credit crisis has an impact on the wider economy, Nationwide said.
"Early indications suggest that consumers may have been more affected by the initial run on Northern Rock, but any lasting effects will be dominated by the impact of recent events on the real economy."
Following the recent turmoil, expectations that the Bank of England would continue to raise interest rates, currently at 5.75%, have been dampened down.
Analysts are now speculating that the Bank may cut rates before the end of the year.
Source: bbc.co.uk
Please post any news stories about IVAs here:
http://www.iva.co.uk/forum/default.asp?CAT_ID=5
See my Blog:
http://ivanews.blogs.iva.co.uk