Consumers are forecasting a rise of 0.5% in the value of their homes and this is the highest expectation since December 2007.
The Nationwide Consumer Confidence Index recorded a slight increase of one point in July, showing that overall consumer confidence remains stable. While the Present Situation Index fell one point, this was countered by the Future Expectations Index which increased by one point.
Martin Gahbauer, Nationwide’s chief economist, said: “Consumer confidence remained broadly stable in July, with limited overall change in sentiment from the previous month. The significance of this stability is that consumers appear to be remaining cautious, but not panicked by the economic climate.
“This lack of volatility is crucial for the economy to recover and there are clear signs that consumers think some degree of recovery has either begun or is expected in the coming six months. Consumers might have been reassured by reports that the housing market may be starting to recover and manufacturing output is no longer falling as rapidly as it was a few months ago.
“Only 21% of people believe the economy will be worse than today in six months time. This is a dramatic improvement from the start of 2009 when this figure was 53%.”
