This is according to Nationwide’s Consumer Confidence Index. However the building society said that while this is a welcome change in direction, we must remember that the Index remains at a historically low level, and the up tick in March failed to reverse the fall suffered in the previous month.
Commenting, Robert Gardner, Nationwide's chief economist, said: “When we compare the Index to its long-term average of 80 points it is clear that we will need to see a succession of increases before we can say that confidence has returned anywhere close to pre-recession levels.
"With the recovery still proving sluggish, it is unlikely that we will see a significant improvement in the coming months. It is far more likely that confidence will remain subdued for several months yet until the economy gains greater momentum.
"Energy price movements and interest rate expectations are likely to play a key role in shaping confidence over the coming months. Oil prices have hit new all-time highs in sterling terms in recent weeks, which will maintain the squeeze on already hard-pressed household budgets.
"News that the Bank of England held rates at 0.5% for another month will be welcomed by many consumers who are currently benefiting from the low base rate environment. However, the Bank of England is expected to start the process of returning interest rates to more normalized levels at some point this year.
“This won't be bad news for everyone, however, with savers likely to benefit in a rising rate environment.
“The full impact of higher interest rates on confidence will depend crucially on the economic background against which they take place as well as the size and pace of any increases.
"The improvement in confidence was driven by a slightly more upbeat assessment of consumers' own situation and their expectation for the economy in the months ahead. Nearly 60% of consumers believe conditions will be the same or better in six months' time. Nevertheless, this is still well below the 81% of consumers who felt the same at this time last year.”
