View more on these topics

Consumer confidence high in May says Nationwide

Consumer confidence in May increased from nine points to 99, the highest point since November 2005, according to the Nationwide Consumer Confidence Index.

Nationwide says that consumers were upbeat about the economy in May and felt comfortable that things would continue to be good over the coming months.

But the Spending Index fell five points, the only one of the four confidence indices to fall.

Confidence moved most sharply in the week when interest rates increased and Tony Blair announced his departure date from Downing Street: spending sentiment fell sharply while overall confidence rose.

Consumers are also upbeat about the current economic and employment situation, with the Present Situation Index rising 12 points to 101 – the largest recorded rise.

The last time people felt this happy about the current state of the economy was in November 2005 when the pace of economic growth was starting to pick up. People’s views on the current employment situation were a big driver behind the growth in confidence, with six in ten people (60%) believing that there are many jobs available now.

Nationwide’s chief economist Fionnuala Earley says: “Higher interest rates have not affected consumers’ overall confidence, but they do seem to be having an impact on their willingness to spend. The good weather in early May might have helped put consumers in a brighter mood but, people’s spending intentions responded sharply to the latest interest rate announcement; this may offer some comfort to the MPC.”

Recommended

Means-testing looks set to be scrapped for low earners

Former DWP minister Baroness Hollis has added an amendment to the Pensions Bill which could remove means-testing for low earners if it is passed in the House of Lords. This would represent a big departure from the Government’s stance on means-testing for benefit entitlement which previously would have been calculated on the basis of the […]

All credit to Suisse

It is fair to say I have been particularly outspoken in my criticism of the debacle at Credit Suisse. During my 23 years in financial services, I have never seen a group of Credit Suisse’s stature implode quite so spectacularly. The failure of upper management to understand the UK retail market and take heed of […]

Mothers missing out on millions

By Steve Webb, director of policy and external communications The ninth Royal London Policy Paper discusses how thousands of mothers are missing out on state pension rights when they don’t have to Earlier this month we published the ninth Royal London Policy Paper, entitled ‘Mothers Missing out on Millions’. It focuses on the thousands of mothers […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com