Member access

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

Recommend :
React to this article
Latest news
Date Title
<1m ago Bollywood embraces the new Khan
2m ago US DOLLAR TECHNICAL ANALYSIS : Rally Extends to 1-Month High
3m ago IROBOT : Reports Second-Quarter Financial Results
3m ago MOODY : upgrades the ratings of $292.5 million of TruPS CDO notes issued by Preferred Term Securities XVI, Ltd. and PreTSL Combination Trust I
3m ago SHERRITT : Releases 2013 Sustainability Report
3m ago EXPONENT : Reports Second Quarter 2014 Fiscal Results
3m ago IGM FINANCIAL : to release Second Quarter 2014 Results
3m ago FLAHERTY & CRUMRINE INVESTMENT GRADE FIXED INCOME : Brompton Funsd Declare Distributions
3m ago OPOWER : to Announce Second Quarter 2014 Earnings Results on August 12, 2014 July 22, 2014
3m ago MICROSOFT : sees end to Nokia losses, shares rise after hours
Latest news
Hot News 
GALASYS : To Meet Market Expectations On Good First-Half
TALLGRASS ENERGY PARTNERS : Announces Pricing of Follow-On Public Offering of Common Units
HERBALIFE : Sets the Record Straight Regarding Continuing Attacks From Pershing Square and Its Paid Supporters
CHARIOT OIL & GAS : *Chariot Oil & Gas Places 58.6M Shares At 15 Pence To Raise USD15M
Most Read News
1h ago SAMSUNG ELECTRONICS : Apple revenue lags Street's view despite strong China growth
2m ago MICROSOFT : sees end to Nokia losses, shares rise after hours
1h ago FIAT : Chrysler recalls older Jeep SUVs for ignition switch issues
1h ago TSXV TOP 5 : Highbank Resources Up 43 Percent Last Week
1h ago AMCON DISTRIBUTING : Announces $0.18 Quarterly Dividend
Most recommended articles
5d agoDJU.S. Industrial Production-Historical
2m ago US DOLLAR TECHNICAL ANALYSIS : Rally Extends to 1-Month High
2m ago MICROSOFT : sees end to Nokia losses, shares rise after hours
10m ago Hawaiian Airlines to add revamped Airbus A330 jet to fleet
22m ago U.S., European airlines halt flights to Israel due to instability
Dynamic quotes