Consumer confidence improved in September

LONDON Fri Sep 30, 2011 4:13am BST

Pedestrians walk past sale signs in the windows of a shop on Oxford Street in London August 25, 2011. REUTERS/Luke MacGregor

Pedestrians walk past sale signs in the windows of a shop on Oxford Street in London August 25, 2011.

Credit: Reuters/Luke MacGregor

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LONDON (Reuters) - Confidence among consumers improved this month for the first time since May, after shoppers' took a more positive view of the economic outlook, a survey showed on Friday.

The GfK NOP consumer confidence index rose to -30 in September from August's 4-month low of -31. The reading was better than expectations for a drop to -33, but is still 10 points below its level this time last year.

"The index's one-point rise this month is not statistically significant, but it is psychologically important as it halts the decline of recent months," said GfK Managing Director Nick Moon.

The component gauging peoples' outlook for the general economic situation in the next 12 months rose to -27 from -31.

Likewise, the outlook for personal finances improved slightly to -10 from -11 and the climate for major purchases also recovered, reaching -28 from -31.

"With economic growth effectively stalled at the moment, retailers would welcome more high street activity, although if consumers are buying German fridges and Japanese cars, this would create quite different problems for the UK economy," Moon said.

The GfK data could potentially presage a levelling out in the pace of decline for other British retail indices. Figures from the Confederation of British Industry released earlier this week showed retail sales dropped at their fastest pace in 16 months in September. Stores expected little improvement in October as struggling consumers clamp down on spending.

The GfK survey was based on a sample of around 2,000 people and conducted between September 2 and September 11 on behalf of the European Commission.

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Comments (1)
Blanchflower wrote:
This story represents a major puzzle given that the EU also published their survey today. This shows exactly the opposite with consumer confidence worsening sharply. Of the twelve consumer questions eight worsened and two remained unchanged. Eight down, two up and two unchanged is going to make it hard to get an overall up no matter how you weight the data. The reason this matters is the EU paid GFK to run the survey and it is from the same people in the same data file, but with the opposite result. How can that be?

It looks more plausible from the data that consumer confidence fell between August and September.

Danny Blanchflower

Sep 29, 2011 5:52am BST  --  Report as abuse
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