Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  News

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
0
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 [email protected]

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news
Date Title
08:59a APPLE : Nokia and Apple Sign Patent License & Business Cooperation Agreement, Settle All Litigation
08:56a SYMANTEC : StarLink signed as Symantec VAD for Middle East
08:56a MICROSOFT : Batelco to offer Surface devices in partnership with Microsoft
08:56a NATIONWIDE BUILDING SOCIETY : says annual profit falls 23 percent
08:56a Saferoad holding asa - approved supplemental prospectus
08:56a MYFC HLDG : Decisions of Annual General Meeting of MyFC Holding AB (publ)
08:56a MICROPORT SCIENTIFIC : ® Releases the Latest Clinical Data of TARGET Series S...
08:56a MICROPORT SCIENTIFIC : ® Broadcasted Two Complex Operations with Firehawk® i...
08:56a AEGEAN AIRLINES S A : First Quarter 2017 Trading Update
08:56a MINISTRY OF FOREIGN AFFAIRS OF REPUBLIC OF LIT : Linkevičius bids farewell to Norway’s Ambassador
Latest news
Advertisement
Hot News 
-2.40%BANK OF QUEENSLAND : Rush of Australian securitised home loans tempts yield-starved Japanese
2.59%BLUE SKY ALTERNATIVE INVESTMENTS (ASX : BLA) discusses 1H17 results and growth
0.00%BASS METALS (ASX : BSM) talks graphite and lithium projects
0.00%PETROLEO BRASILEIRO PETROBRAS : Petrobras says plans to sell Jurua gas field in Amazon
-0.33%Japan May manufacturing growth slows to six-month low - flash PMI
Most Read News
05/22 EXCLUSIVE : North American carmakers want rules of origin in NAFTA left untouched - Mexico lobby
12:04a AXAMANSARD INSURANCE : AXA Mansard Insurance Shareholders Get Five kobo Dividend
02:35aDJASTRAZENECA : Says Bydureon Trial Meets Safety Objectives; No Significant CV Reduction
05/22 SRI LANKA TELECOM : SLT announces the “Zero One Awards Night” dedicated to recognize digital excellence in Sri Lanka.
05/22DJPETROLEO BRASILEIRO PETROBRAS : Petrobras Issues $4 Billion in Debt on International Markets
Most recommended articles
05/22 NOBLE : shares tumble after S&P ratings downgrade
02:56a NATIONWIDE BUILDING SOCIETY : says annual profit falls 23 percent
02:54a CATHAY PACIFIC AIRWAYS : denies media report of further job cuts
02:50a BAIDU : Google's AlphaGo takes on Chinese Go master in best of three matches
02:48aDJCITIGROUP : Nasdaq Team Up -- WSJ