Upturn In Consumer Confidence Recorded
Britons are beginning to hold a more positive outlook towards their finances, it has been reported.
In the latest consumer confidence index released by Nationwide, it was revealed that peoples opinions in regards to money improved over the course of October. The financial services firm recorded an overall score of 55 for the month. Such a figure represents an eight per cent increase from the 51 recorded in September. Furthermore, it is the first improvement seen in the nations overall financial opinion since the end of 2007.
Overall, an increase was recorded in two out of three indices which make up the companys study, with the expectations index, which tracks peoples opinions on the future of the labour and economy, rising ten points over the course of last month to stand at 69. Within this index, 38 per cent of people believe the economy will get worse in the next six months, while 27 per cent think it will be better. Nationwide points out that the latter statistic indicates a rise from the 14 per cent of adults who thought this in September.
Meanwhile, consumers spending confidence rose over the month from 53 to 55. However, the present situation index, which was the only one to drop, fell from 39 to 35.
And in holding a more positive view towards the financial future, consumers could find that they are in a better position to keep up with various areas spending commitments such as personal loan repayments and utility bills.
The financial services firm reported that despite an overall rise in consumer sentiment, more people do not think now is a good opportunity to make a major financial purchase. Some 66 per cent of Britons claimed last month was a bad time to buy something such as a house or a car, up from the 64 per cent who thought this way in September. Meanwhile, 41 per cent currently feel indifferent towards buying household goods.
However, for those looking for an effective way to fund making a purchase, taking out a cheap loan could prove to be effective.
Fionnuala Earley, chief economist for Nationwide, said: “The actions taken by the government and the Bank of England to support financial markets do seem to have buoyed consumers confidence and could be responsible for the increased confidence in the future economic situation. However, with the economy heading into recession, there will be bumpy times ahead for the UK consumer and it is likely to be some time before confidence returns to the level of a year ago. Rapid cuts in interest rates are however on the horizon and this may support a recovery in confidence going forward.”
People with concerns about how to manage their finances over the coming months may want to consider applying for a loan. In taking out such borrowing, consumers may find that they are able to meet various spending commitments quickly, leaving them with an affordable monthly payment to make. This could prove to be of particular assistance after the 27th Financial Activity Survey commissioned by John Gilbert Financial Research last month showed the nations expected monetary actions stood at 94.6, the highest figure recorded since last 2006.
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