Lower interest rates improved consumer confidence in March

According to a recent report there was an increase in consumer confidence in the UK for the months of March, with consumers being more optimists as further cuts in the interest rate left many with more money in their pockets due to lower repayments. This is despite the gloom that is being created by job losses across the UK because of the recession.

The report shows that the GfK/NOP consumer confidence index rose to the highest level in ten months in March. Officials have said that this will prove to be good news for the Prime Minister, Gordon Brown, who has been suffering in terms of opinion polls and is due to call an election by the middle of next year.

Rachael Joy, of GfK, said: “Consumer confidence jumped quite significantly to levels not seen since May last year. It suggests that lower interest rates and a better picture for household bills are restoring some confidence.”

A number of reports have also suggested that whilst the nation is still going through a recession, it looks as though the gloom could be lifting in the UK with house prices set to bottom out soon before rising again and with lending levels expected to improve. There has also been more interest in the housing market as a result of low interest rates and lower house prices.