UK Consumer Confidence Rises Slightly

Consumer confidence in Britain rose slightly in Dec. as Britons were encouraged by falling gas prices, lower interest rates and the government's decision to reduce the national sales tax. The Gfk NOP study, based on a survey of 2,000 people interviewed earlier in Dec., also showed increase in the number of people willing to make high-priced purchases, like furniture or electronics. This increased readiness to spend appears to be spurred by substantial pre-Xmas price reductions at some of Britain's major stores. However the confidence-related figures are substantially lower than they were one year ago and there was a drop in optimism when Britons were asked how they expect the economy to perform in the next year. One of Gfk NOP's consumer confidence experts said there is perhaps a glimmer of hope: for the second month running, there has been an improvement in the number of consumers who think now is a good time to make a major purchase, suggesting that high street deals and the small reduction in VAT sales tax have improved consumers views on this area. She said the key question is whether this slight break in overall grim mood will translate into increased purchases during the final days of the Christmas season and the sales expected in early January. The overall gloom was reflected by a drop in the number of people who feel that now is a good time to save.