Chart of the Day: Nationwide Consumer Confidence Index

First published in May 2004, the Nationwide Building Society’s consumer confidence index is a recent addition to the phalanx of indices seeking to track changes in household sentiment and give us a lead indicator of where the economic cycle might be heading. 1,000 adults are interviewed each month, in a survey that is the closest we get in the UK to the Conference Board surveys published in the United States,The Index is based on responses to 5 questions included in the survey:

People’s appraisal of current economic conditions
People’s expectations regarding economic conditions six months hence
People’s appraisal of the current employment conditions
People’s expectations regarding employment conditions six months hence
People’s expectations regarding their total family income six months hence

The latest figures were released today and show the weakest confidence since the survey was launched, evidence perhaps that the gloomier economic headlines dominating the papers and TV news coverage in recent days and weeks is starting to show through. Looking a little at the detail within the survey, it seems that people’s expectations for the economy in six months time are improving slightly, but on balance those surveyed still expect house prices to rise during 2008. Perhaps the news on property prices from the last few days will change this perception in the May survey?

Unit 2 Macro: Cyclical and Structural Economic Issues Facing the UK [23 May 2012]
Unit 2 Macro: Positive and Negative Multiplier Effects [20 May 2012]
Revision notes on unemployment [20 May 2012]
Unit 2 Macro: Revision Notes on Supply-side Policies [10 May 2012]
Unit 2 Macro: Monetary Policy and Inflation Glossary [5 May 2012]
Unit 2 Macro: Trade and Balance of Payments Glossary [5 May 2012]
Unit 2 Macro: Economic Cycle Glossary [5 May 2012]
Macro Revision: Putting Things in Context [29 Apr 2012]
Unit 2 Macro: Revision on Capital Investment [30 Mar 2012]
George Buckley at the Millfield Economics Society [28 Mar 2012]
Unit 4 Macro: Evaluating 3 Years of Quantitative Easing [27 Mar 2012]
Unit 2 Macro: Policies to Drive Economic Recovery [9 Mar 2012]
Economies hooked on central bank stimulants? [4 Mar 2012]
Unit 4 Macro: King on the UK Economy [15 Feb 2012]
Martin Wolf on Global Shocks [10 Feb 2012]
Unit 4 Macro: Money, Debt and the New World Order [22 Jan 2012]
Unit 4 Macro: UK Bond Yields Reach Record Lows [11 Jan 2012]
Unit 2 Macro: Factors Driving Business Investment [10 Jan 2012]
Hopes and Fears 2012 [10 Jan 2012]
Unit 2 Macro: The UK Housing Market in 2011 [26 Dec 2011]
Where is the UK Economy? National Output [22 Nov 2011]
AS Macro: The State of British Business [13 Nov 2011]
Unit 2 Macro: UK suffers a weak recovery [12 Oct 2011]
Why Is Macroeconomics Such A Mess? [11 Oct 2011]
Unit 2 Macro: Homework Assignment on Consumer Spending [3 Oct 2011]
Unit 1 Micro: Exercise on Market Supply [26 Sep 2011]
Unit 4 Macro: Greek Economy at Default’s Door [25 Sep 2011]
UK Macro: Risks of a Double Dip Recession [12 Sep 2011]
John Kay on the future of Economics [26 Aug 2011]
Monetary Policy Roundtable [25 Jul 2011]
Unit 4 Macro: Dangers of High Inflation [11 Jul 2011]
Unit 1 Micro: High price of petrol drains demand [9 Jul 2011]
A2 Macro: Consumer Spending [30 May 2011]
AS Macro Key Term: Deflation [24 May 2011]
AS Macro Key Term: Cost Push Inflation [24 May 2011]
AS Macro Key Term: Economic Recovery [23 May 2011]
AS Macro Key Term: Recession [23 May 2011]
A2 Micro: The Importance of Profit [19 May 2011]
UK Economy Update: What Mervyn Said [11 May 2011]
AS Micro: What´s really behind the oil price rise? [10 May 2011]
Interest Rates Held at 0.5% once again [5 May 2011]
Macroeconomics revision - measuring Consumer Confidence [4 May 2011]
AS and A2 Macro Revision: Keynesian Economics [28 Apr 2011]
Rise in investment could kick start recovery [18 Apr 2011]
A2 Macro: Back to Roubini - a Year On! [11 Apr 2011]
AS Macro Key Term: Real Disposable Income [11 Apr 2011]
AS Micro: Prices for New and Second Hand Cars [9 Apr 2011]
AS Macro Key Term: Double-Dip Recession [8 Apr 2011]
AS Macro Key Term: Jobless Recovery [8 Apr 2011]
AS Macro Key Term: Fiscal Austerity [6 Apr 2011]
AS Macro Key Term: Expansionary Monetary Policy [4 Apr 2011]
AS Macro Key Term: Bubble [4 Apr 2011]
Focus on Spain [16 Mar 2011]
Timetric: UK Consumption as a Share of GDP [12 Mar 2011]
AS Macro Revision: Investment Spending [12 Mar 2011]
EU Economics: Germany leads Euro Zone revival [25 Feb 2011]
Never Mind Plan B - Plan V needed for the UK Economy! [17 Feb 2011]
David Smith on Shifting Sands in the Global Economy [8 Feb 2011]
Martin Weale argues for higher interest rates now! [1 Feb 2011]
Choppy Times - An Economic Cycle Update and Resource Download [25 Jan 2011]
Economics Q&A: Will the rise in VAT harm the UK’s economic performance? [17 Jan 2011]
Economics Q&A: What economic factors affect the demand for new cars? [9 Jan 2011]
A seasonal introduction to Consumption, Government Spending and Aggregate Demand. [22 Dec 2010]
EU Economy: Focus on Inflation [16 Dec 2010]
Test Cricket – better to make your debut at home [2 Dec 2010]
Video resources on consumption and saving [7 Oct 2010]
IMF signs off on UK’s fiscal plans [27 Sep 2010]
Fears rise for a double dip over the pond [25 Aug 2010]
King on the economy [11 Aug 2010]
Reasons to fear a jobless recovery [11 Aug 2010]
Consumer sentiment weakens as double dip looms [2 Aug 2010]
Where next for the UK economy? [23 Jul 2010]
Unit 2 Macro: How can supply-side policies help in a recession? [6 Jun 2010]
Paul Krugman at the LSE [2 Jun 2010]
AS Macro Revision: Policies to Control Inflation [31 May 2010]
AS Macro Revision: Cost Push Inflation [31 May 2010]
AS Macro Revision: Household Saving [30 May 2010]
AS Macro Revision: The Importance of Consumption [30 May 2010]
AS Macro: Sterling and the UK Economy [29 May 2010]
A2 Economics Revision - Price Expectations and Money Illusion [8 May 2010]
The Financial Crisis and Beyond [6 May 2010]
AS Economics Revision - Managing the Economy [2 May 2010]
Issues and Prospects for the UK Economy in 2010 [25 Apr 2010]
Animal Spirits [25 Apr 2010]
RES Essay Competition: Preventing Housing Bubbles [12 Apr 2010]
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UK Economy Revision: Inflation in the last few years [1 Apr 2010]
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Capital flight [17 Dec 2009]
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Inflation targets [15 Dec 2009]
Macroeconomic stability [14 Dec 2009]
Law and Morality in Economic Life [26 Nov 2009]
The power of words… [12 Nov 2009]

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