Summer feel-good factor sees morale soar on high street
SUMMER’S feel-good factor saw consumer confidence bounce back last month, a Nationwide survey revealed today.
The leading barometer of morale on the British high street jumped 11 points, from 44 in April to 55 in May.
“Despite recording one of the biggest monthly jumps ever, the index still sits nine points lower than the same period last year and well below the historical average,” warned Nationwide economist Robert Gardner.
The index was measured between 25 April and 22 May, including the Royal Wedding and several other bank holidays, and a period of clement weather.
These factors are “likely to have boosted” sentiment among Brits, the survey said.
The expectations index, which measures optimism for the economy over the next six months, soared 17 points to 76 in the latest survey, from 59 previously.
People were more upbeat about spending; the sub-index measuring willingness to splash cash rose 16 points to 79, while the percentage of consumers who believe now is a good time to make a major purchase rose by seven per cent to 27 per cent.
However, the index measuring current economic conditions was less positive, increasing by just three points in May.
“There are still strong downward pressures, not least higher than hoped for inflation and recent announcements of large domestic energy price hikes,” Gardner added.