–UK Nationwide Aug Consumer Confidence 48 Vs 49 In July
–UK Nationwide Aug Spending Index 79 Vs 72 In July
LONDON (MNI) – Against a backdrop of urban riots and sharp falls in
equity prices, and other market turbulence, UK consumer confidence was
little changed in August and consumers showed a markedly improved
propensity to spend.
The headline Nationwide Confidence Index dipped to 48 in August
from 49 in July, while the spending index rose to 79 from 72. The
outturn was a shade better than analysts’ median forecast for a 47
reading, but still shows confidence at historically low levels.
The 48 reading was the lowest since April’s 45 and only seven
points above the record low of 41 recorded back in February.
The Nationwide spending index has been volatile, hitting a low of
55 in February, spiking to 81 in May before sliding back to 72 in July.
Official retail sales volume figures have shown growth running around
flat on the year, and there is no easy read across from the Nationwide
series to headline consumer spending.
Nationwide said the proportion of consumers saying now is a bad
time to make a major purchase fell by four percentage points in August
to 47%, while those saying it was a good time rose to 30%.
The August expectations index dipped to 65 from July’s 66.
The Nationwide consumer confidence survey was conducted between
July 25 and August 21, a period which covers both the early August
riots, which generated extensive media coverage while apparently having
only marginal economic impact, and some steep falls in equity prices.
“There was a raft of bad news in August, so in some respects, it is
encouraging that we observed only a marginal decline in sentiment during
the month,” Robert Gardner, Nationwide’s Chief Economist, said.
“The relative stability is probably a reflection of the already
subdued level of confidence, rather than indicating resilience in the
household sector,” he added.
–London newsroom: 4420 7862 7491 email: drobinson@marketnews.com
[TOPICS: MABDS$,M$B$$$]
