Consumer Confidence Slowly Picks Up
Consumer confidence showed positive signs in December at 53 points but this figure still remains below its long-run average of 81.
The Nationwide Consumer Confidence Index marked a rise from the three months of falls prior to that - however the Spending Index does display signs of resilience in what continues to be a downbeat time.
Pessimism still surrounded confidence in the housing market in December as consumers were shown to expect the value of their home to decrease by 0.9 percent over the next six months.
This is slightly more positive than in November however which noted a decrease of 1.4 percent.
“While the up-tick is encouraging, household confidence nevertheless remains subdued, reflecting ongoing uncertainty about the economic outlook,” said Robert Gardner, Nationwide’s chief economist.
“Over the course of the next few months it should become clearer as to what impact, if any, the increased rate of VAT has had on attitudes in this area.”
Budget Your Spending with a Prepay Money Card
Many people will be feeling apprehensive about the rise in VAT and how it will hinder their ability to spend as they used to.
To prevent falling into debt, the nation will have to readjust their budgets to limit their spending to an amount they can afford.
If consumers feel better about what they can afford consumer confidence may improve, especially if more people are able to set aside some money in a savings account.
A prepay money card prevents overspending on this budget as the user can only spend the amount they loaded onto the card.
If overspending each month is a habit you would like to kick, then see if a free prepay card can help. You can use it to make purchases in retail shops as you would a normal debit or credit card, and also to obtain cash out of a cash machine.