Log in
Login
Password
Remember
Lost password
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 

4-Traders Homepage  >  News

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
04:09a EDUCATION MANAGEMENT : Tucson college ordered to test, retrain nursing students
03:58a GARDEN CITY NPV : Sharks Out Of Relegation Zone -Coach
03:53a Former teenage soldier hatches millions from Chinese egg futures
03:33a WESTERN UNION : The disruptors are forcing change in the remittance industry
03:32a KINDER MORGAN : OPINION: Scoppe: Why should a private company be able to make you sell your land?
03:23a MANCHESTER UNITED : Homeless World Cup impacted one million lives, says Young
03:23a TOYOTA MOTOR : Mirai sets record for zero-emission driving range
03:23a OOREDOO : launches three mobile health clinics in Algeria
03:23a OOREDOO : Mozaic Movies On Demand hosts Marvel Festival
03:23a QATAR ISLAMIC BANK Q : 50 Qatari students from QU college train at QIB
Latest news
Advertisement
Hot News 
ANGLESEY MINING : Final Results and annual report
CAMBIUM GLOBAL TIMBERLAND : Appoints Tony Gardner As Chairman
EQUATORIAL PALM OIL : Non-Executive Buys Shares (DIRECTOR DEALINGS)
ENTEGRA FINANCIAL : posts 2Q profit
FAIR VALUE REIT : DGAP-WpÜG: Takeover Offer ;
Most Read News
08/01 CBB CATTLEMEN BEEF PROMOTION AND RESEARCH BOAR : August 2015
08/01 CORRIDOR OF INVESTMENT : 'CPEC will strengthen trade and investment'
08/01 Government of Canada Supports the Upgrade and Expansion of Highway 1 Near Revelstoke
08/01 PAN ASIA MINING : NOTICE OF BOARD OF DIRECTORS’ MEETING
08/01 St. Louis Post-Dispatch Jim Gallagher column
Most recommended articles
03:53a Former teenage soldier hatches millions from Chinese egg futures
02:41a Verizon's workers say no strike for now, union talks continue
02:06a Lloyds shareholders question government's sale plan
08/01 Egypt says over half of summit promises turned into projects - planning minister
08/01 Greece may seek up to 24 billion euros in first new aid tranche