Log in
Lost password
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  News


Latest NewsCompaniesMarketsEconomy & ForexCommoditiesHot NewsMost Read NewsRecomm.Business LeadersVideosCalendar 

UK Consumers Less Pessimistic About Their Own Finances -Survey

06/23/2013 | 07:16pm US/Eastern

By Ilona Billington

LONDON--U.K. consumers were less pessimistic about the economy and their future personal finances in May as better economic news gave them a boost, a survey showed Monday.

The proportion of those feeling better about their finances was higher in the south of the U.K. than in the north, while survey participants also noted that energy bills had risen which likely limited the rise on non-essential items.

The LloydsTSB monthly spending power report consumer confidence index slid one point to 108 in May, meaning it was just below the two-year high of 109 reported in April.

"The recent reports of a return to growth for the U.K. economy are being reflected in improved consumer sentiment, which is good news as better confidence will help to sustain the economic recovery," said Patrick Foley, LloydsTSB's chief economist.

"A gradual easing in the squeeze on consumers from essential spending is helping, although with energy bills increasing again, the improvement in spending power remains modest," Mr. Foley said.

The U.K. economy successfully avoided a triple-dip recession in the first three months of this year after it posted a better than expected 0.3% quarterly gain. And, the better news has broadly continued over the second quarter with data firm Markit's purchasing managers indexes reporting further expansion across the private sector, while unemployment has continued to decline.

One potential problem for the longer term sustainability of the economic recovery remains consumer spending. Its a major part of the economy as it accounts for around 60% of gross domestic product, but with earnings growth hovering around record lows of just 0.9% while inflation is three times that rate at 2.7% there are concerns on how much spending Britons can afford.

The latest figures suggest the squeeze is easing, however, and the LloydsTSB spending report shows that the balance of consumers who expect to have more money after essential spending in the future improved to -6 in May from -9 in April.

The balance is calculated by taking the number who say they think their finances will get worse away from the number who say they will improve.

The survey also showed consumers are becoming less pessimistic on the housing market, which likely reflects the further rise in prices and activity reported in recent months.

Write to Ilona Billington at ilona.billington@dowjones.com

React to this article
Latest news
Date Title
02:31p FIAT CHRYSLER AUTOMOBILES NV : ++ FCA US workers 'ready to strike' ++
02:31p ALTIPLANO MINERALS : Announces Termination of Proposed Acquisition of Demetra Minerals Inc.
02:31p LOCKHEED MARTIN : Delivers First Upgraded PAC-3 Missile Interceptors (Signed Sealed Delivered)
02:31p Ingenico and BitPay Present Bitcoin Payment Through TPV Point of Sale Terminal
02:31p BARCLAYS : and OFI Global Asset Management announce changes to the Barclays : OFI SteelPath Midstream MLP Index
02:31p BK Ultrasound, Powered by Analogic, Launches bk5000 Ultrasound System Designed for Surgery
02:31p CARENET HEALTHCARE SERVICES : Promotes Stacie Stoner to Vice President of Customer Experience
02:30p OSL : Entry into a Material Definitive Agreement, Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant, Unregistered Sale of Equity Securities, Financial Statements and Exhibits (form 8-K)
02:30p EU/IMF may start bailout review last week of October - Greece government source
02:30p RE/MAX : Remains a Global Franchise Leader
Latest news
Hot News 
KOFAX : 5 Facts You Need to Know About Mobile
MAX PETROLEUM : Corporate update and Cancellation of admission to AIM
TOMCO ENERGY : Still Faces Long Holliday Waiting For Improved Production System
DRIVER : Pre Close Trading Update
Most Read News
09:11a RESEARCH AND MARKETS : 2016 Emerging Infectious Disease Tests, and Strategic Profiles of Leading Reagent and Instrument Suppliers
07:29a UK OIL AND GAS INDUSTRY ASSOCIATION : Oil & Gas UK Awards 2015 Finalists Announced
03:28a AQUARIUS PLATINUM LIMITED - Offer by Sibanye Gold Limited
10/05DJAustralia Trade Deficit Widens In August
Most recommended articles
02:30p EU/IMF may start bailout review last week of October - Greece government source
02:26pDJFIAT CHRYSLER AUTOMOBILES NV : UAW Threatening Strike at Chrysler
02:25pDJMicrosoft Unveils New Smartphones -- Update
02:15p Oil jumps $2, breaking range as supply seen ebbing
02:15pDJFord and Fiat Chrysler Try to Lure Volkswagen Costumers