Consumer confidence grows

Consumer confidence in the UK rose for the third consecutive month but shoppers are still cautious about future spending, according to a Nationwide Consumer Confidence survey conducted by TNS.

Despite a three point rise (to 88) in confidence from last month, consumers remain subdued about the economic situation, with confidence well below the levels seen in the first half of 2006.

Confidence in future spending has fallen sharply, with many consumers concerned about making major purchases or spending on household items. The Spending Index fell 11 points to 83, some 23 points lower than this time last year.

Nationwide chief economist Fionnuala Earley said: 'Although consumers appeared slightly more upbeat in March, the overall picture is still subdued. With uncertainty about the interest rate position, but with the risk clearly on the upside, consumers are unlikely to recover confidence in the short term.'