Consumer sentiment at 2-year high

By Lee Wild

Date: Wednesday 03 Mar 2010

The UK’s exit from recession in the fourth quarter of last year has helped consumer confidence hit its highest in two years, according to the latest survey.

Nationwide’s consumer confidence index rose 6 points from the previous month to 80 in February, the best read since January 2008.

People are also more confident about the economy in six months time than they have been since records began in 2004.

“Consumer confidence is crucial to a strong and sustainable recovery and while confidence is likely to remain fragile for some months to come, the early signs do look positive,” said the building society’s chief economist Martin Gahbauer.

“A strong influencing factor behind this uplift is likely to be the news that the U.K. has come out of its longest recession on record following six consecutive quarters of contraction beginning in 2008."

Initial estimates revealed Britain grew an anemic 0.1% in the last three months of 2009, but that was revised up last week to a more impressive 0.3%.

Recovery hopes were given a further lift this morning as activity in the UK’s dominant services sector rose to better-than-expected 58.4 last month, up from 54.5 in January to a three-year high.

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