Consumer confidence in the U.K. has bounced back in the last month of the first quarter from the record low recorded in the previous month, although looming austerity cuts have kept sentiment low, according to The Daily Telegraph. On Thursday, Nationwide reported that its index of consumer sentiment jumped five points in March to reach 44, up from the record low record low posted during February. Nationwide chief economist Robert Gardner called it “a welcome change in direction,” although was quick to remind that “the index remains at a historically low level.”
The report showed that consumers were “slightly more upbeat” about the outlook for their finances and the overall economy over the next six months, although the sub-index of current conditions reflected ongoing pessimism. The data also showed that the gauge for making major purchases also improved, although retail recent data showed the biggest monthly loss since 1995. Gardner said successive improvements would be necessary to return to normal levels of sentiment, but warned, “It is unlikely that we will see a significant improvement in the coming months.”