–UK Nationwide Apr Consumer Confidence 44 Versus 53 in March
LONDON (MNI) – The surge in consumer confidence in a sun drenched
March proved transitory, with pessimism falling straight back to its
February level in the wettest April on record.
The April Nationwide Consumer Confidence Index fell to 44 from 53
in March, matching February’s outturn and down from the 47 seen in
January. All the components of the index deteriorated, with consumers
more pessimistic over their current situation, their expectations and
over their spending.
April’s Present Situation Index fell to 21 from 24 in March, the
Expectations Index dropped to 60 from 73 and the Spending Index dropped
to 75 from 86. In all, 68% of respondents described the economic
situation as bad and 67% said not many, or few, jobs were available.
Bank of England Monetary Policy Committee members have warned that
with the official data showing the economy sliding back into technical
recession consumer confidence could be hit.
The Nationwide Consumer Confidence survey pre-dates the release of
the first quarter GDP release on April 25, which showed the economy
contracting 0.2% on the quarter, heralding the return of recession. The
Nationwide survey was conducted between March 26 and April 22.
“News that the UK dipped back into recession at the start of the
year may further depress sentiment in the near-term,” Robert Gardner,
Nationwide’s Chief Economist, said.
While the Nationwide Consumer Confidence Index has gyrated in
recent months, it has been consistently running way below its long run
average of 76, but is holding above last October’s record low of 36.
–London newsroom: 4420 7862 7491 email: drobinson@marketnews.com
[TOPICS: MABDS$,M$B$$$]
