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

4-Traders Homepage  >  News


Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesHot NewsMost Read NewsRecomm.Business LeadersCalendar 

UK Consumers Less Pessimistic About Their Own Finances -Survey

share with twitter share with LinkedIn share with facebook
share via e-mail
06/24/2013 | 01:16am CEST

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

share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news
Date Title
08:13a AT&T : Trump says AT&T purchase of media giant Time Warner will "destroy democracy"
08:07a EMIRATES NBD BANK : Orange Auto Signs deal with EmiratesNBD to offer discounts for customers
08:03a MGP INGREDIENTS : Two of 125 victims remain hospitalized from Atchison chemical spill
08:02a JABAL OMAR DEVELOPMENT : reports record SR691.07m profit in fourth quarter
08:02a DUBAI ELECTRICITY AND WATER AUTHORITY : Quote on World Energy Day by HE Saeed Mohammed Al Tayer, Vice Chairman of Dubai Supreme Council of Energy and MD & CEO of DEWA
07:57a QATAR NATIONAL BANK SAQ : IMF global growth forecast revisions Read More...
07:16a STARBUCKS : Creating a space for small business success
07:16a SKANSKA : Daffodil Planting On Ditmars
07:11a EMC : State's highest court to hear EMC shareholder suit appeal
06:10a AT&T'S $85.4B DEAL FOR TIME WARNER : A new bet on synergy
Latest news
Hot News 
-8.12%Elliott Management Opposes GE's Offer for German 3-D Printer Maker SLM
-5.41%MOODY : Says Justice Department Preparing Complaint
4.21%Microsoft shares hit high as cloud business flies above estimates
12.75%FTSE steadies near one-week high; BAT slips
-2.85%BAT offers to buy U.S. tobacco firm Reynolds in $47 billion deal
Most Read News
10/22 AT&T to buy Time Warner for $85 billion, create telecom-media giant
10/22 TIME WARNER : AT&T to Acquire Time Warner
10/22 AT&T : reaches deal to buy Time Warner for $85.4bn
10/22 EXCLUSIVE : Goldman Sachs' Latam investment bank chief to leave - source
10/22 FIMALAC : PSG launches ambitious eSports project on League of Legends
Most recommended articles
10/21 Second wind for stocks as earnings turn positive
10/21DJTWITTER : Hundreds Evacuated from London's City Airport
10/21DJFACEBOOK : Employees Pushed to Remove Trump Posts as Hate Speech
10/19DJGold Prices Boosted by Weaker Dollar