Consumer confidence stabilises

By Chris Malone

Consumer confidence remained fairly steady last month, new figures from Nationwide Building Society show.

The statistics revealed that the level fell by just one point during October to 52, although the Expectations Index decreased by four points to 70 and is now at its lowest point for eight months.

It has dropped by a massive 50 points in the nine months since February this year, when it was at a historical peak of 120.

There was some positive news, with a six-point pick-up in the Spending Index, which rose to 92 points, while the Present Situation Index was also up by three points to 25.

Nationwide chief economist Martin Gahbauer explained that there has been little change in overall confidence, with consumers waiting to see the results of the government's spending review before making up their mind.

"We saw a significant drop in confidence the previous month and the underlying anxiety around the strength and direction of the recovery appears to remain," he noted.

"However, on a positive note, there are signs this month that some faith has returned in relation to the present situation and consumers' propensity to spend in the run up to Christmas."

In other news, the housing market has begun to contract as the UK moves towards winter, the National Association of Estate Agents has revealed.