Consumer financial confidence ‘remains uneasy’

People remain uneasy about their financial futures because of current political and economic uncertainty, it has been claimed.

Mark Saddleton, head of economic and market analysis at Nationwide, made his comments in the wake of the recent Consumer Confidence Index.

The report showed a one point rise to 74 in April and is now 23 points higher than it was this time last year.

However, Mr Saddleton warned that further increases are unlikely as people are concerned about the impact a hung parliament and deficit reduction plans of the new government will have on issues such as employment and the economy.

He remarked: “With confidence still fragile following the recent recession, there is a very real possibility that the index could experience further volatility in the coming months.”

Joanna Elson, chief executive of the Money Advice Trust, recently noted that people in Britain are becoming more cautious with their borrowing and spending practices as a result of the economic downturn.

By Joe Shervin