The Expectations and Spending indices also increased to 57 and 92 respectively in February.
The only index to fall during the month was the Present Situation Index, which fell from 24 in January to 22 in February. Consumers remain gloomy about the current economic and employment situation this month. Well over three quarters (86%) believe the current economic situation to be bad, compared to 82% in January. However, a greater number believe economic conditions will be better in six months time (19%), compared to January (17%).
Commenting, Nationwide’s chief economist, Fionnuala Earley, said: “Consumers’ views about the current economic and labour market conditions are in line with the recessionary climate in the UK. However, their increased optimism about the future is encouraging. Spending confidence continues to be resilient, which could reflect the effect of sharp falls in interest rates on consumers’ disposable incomes, but is also likely to reflect significant discounts available.”
