–UK Nationwide Aug Consumer Confidence 61 vs 56 in Jul
–UK Nationwide Aug Expectations Index 84 vs 77 Prior
–UK Nationwide Aug Spending Index 98 vs 94 In Jul
–UK Nationwide Expectations Index Rises For 1st Time In 5mths

LONDON (MNI) – UK consumer confidence rallied in August, according
to the latest Nationwide Consumer Confidence Index Survey.

The Nationwide Consumer Confidence Index rose to 61 in August, up
from 56 in July. The Expectations Index also rose seven points to 84,
having dropped a cumulative 43 points in the five consecutive monthly
losses since February 2010.

Nationwide said that the prolonged dip in UK consumer confidence
may have been due to consumers behaving cautiously in the months
surrounding the UK General Election in May, and that shoppers are less
concerned about the potential effects of imminent public spending cuts.

Confidence in the economy’s situation over the next six months rose
slightly with 26% of respondents expecting the economic situation to be
better in six months time versus 23% expecting an improvement in July.
But 23% of respondents expect the economy to worsen over the next six
months versus 28% in July, with 47% expecting no change.

The majority of consumers predicted no change in their household
income six months out, with 72% saying it would be the same, 15% lower
and 12% higher.

The 15% of people expecting lower household income is down from 21%
in July.

Fifty four percent of respondents said there would be not many/few
jobs available in six months time, compared with just 23% saying there
would be many/some jobs available, a similar reading to last month.

Commenting on the data, Mark Saddleton, Nationwide’s head of
economic and market analysis said:

“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 the coming months,” he added.

–London newsroom: 4420 7862 7492 email: wwilkes@marketnews.com

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