Consumer confidence on the up

Consumer confidence bounced back in September as Britons became more positive about their financial status, Nationwide has revealed.

While the lender has acknowledged that its survey took place before the brunt of the Northern Rock debacle had become apparent, the study nonetheless shows significant gains in the Current Situations, Spending and Expectations indices.

Overall confidence was up by five points, but Nationwide has said that it is cautious over future trends in light of the dramatic events of the past few weeks.

"When people feel secure in their employment it is perhaps not surprising that their general confidence levels are more robust," said Nationwide chief economist Fionnuala Earley.

"The effect of the recent financial turmoil on overall economic, and hence labour market conditions, is therefore crucial to consumers' confidence going forward.

"Early indications suggest that consumers may have been more affected by the initial run on Northern Rock, but any lasting effects will be dominated by the impact of recent events on the real economy," Ms Earley concluded.

Last week Lloyds TSB's own barometer also reported that confidence was on the increase.



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