UK consumer confidence stable in July - Nationwide |
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Wed, 01 Aug 2007 00:16
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LONDON (Thomson Financial) - UK consumer confidence was stable in July, unfazed by higher interest rates, failed terrorist attacks, and severe flooding in north England, the country's biggest building society said.In its monthly report on consumer sentiment, Nationwide said its consumer confidence index picked up one point to 96, barely reversing the first fall in confidence seen on the index in six months in June.'Consumers' confidence does not seem to have been rattled by the events of the last month and remained broadly stable in July,' said Fionnuala Earley, Nationwide's chief economist.The small rise in confidence was largely due to an improvement in expectations about the future, while other indices remained unchanged.The Expectations Index, which gives an insight into how consumers feel about the economic and employment situation in six months' time, rose three points to 96, going some way to recovering the four point fall seen in June.However, Earley said 'the squeeze on (consumers') finances, strong chances of a further rise in rates, along with the effect of more widespread floods in the south of the country in the last couple of weeks are likely to affect their sentiment going forward.'The Present Situation Index, which shows how consumers feel about the current economic and employment situation, was unchanged at 98.The Spending Index, which monitors the consumer's propensity to spend, was also unmoved at 86, though it remains above its three month average.The survey added that people were a little less optimistic about their future household income, with 24 pct believing this will be higher in six months' time, down from 28 pct in June.Expectations of house price growth also moderated, with consumers predicting house prices would rise 2.7 pct over the coming six months, a further slowdown from 2.9 pct in June and a high of 4.5 pct in May.chinny.li@thomson.comcml/dcaCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
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Euro zone July economic sentiment indicator 111.0 vs 111.7 in June 