U.K. Consumer Confidence Improves For Second Month

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British consumer confidence improved for the second month in February, the results of a closely watched survey show.

Market research firm GfK NOP said the consumer confidence index stood at -14 in February compared to -17 in the previous month.

Four of the five components of the consumer confidence index experienced an improvement. The sub-index measuring general economic situation over the last 12 months climbed to -50 in February from -57 in the preceding month, while the sub-index measuring general economic situation over the next 12 months rose to 4 from -2.

At the same time, the sub-index assessing the respondents' personal financial situation over the last 12 months nudged up to -13 from -14 while that assessing the financial situation over the next 12 months rose to 6 from 4. The sub-index measuring the climate for major purchases was unchanged at -16.

The annual moving average of the consumer sentiment index also improved and stood at -22, the firm said. A year ago, the sentiment index stood at -35.

The improvement in the consumer confidence indicator, albeit a small one, is welcome news for the government, commented Nick Moon, Managing Director of GfK NOP Social Research.

"It is also significant that, for the second month running, the biggest gains in individual elements of the index, were for the view of the economy in general over the last and next 12 months," he said.

The U.K. economy crawled out of its six-quarter recession in the December quarter, recording a dissapointing 0.1% quarterly expansion, led by growth in the manufacturing and services sectors.

The lacklustre nature of the recovery has sparked concerns that the U.K. economy could operate well below its pre-recession levels for a long time.

Last week, figures showed that U.K. inflation had accelerated to 3.5% and that public finances had deteriorated further. The country's budget deficit is estimated at 11.8% of gross domestic product and is projected to climb further this year to levels similar to that of underfire Greece.

Fears over the strength of the economy resulted in the British pound falling to a nine-month low against the U.S. dollar on Thursday.

British consumer confidence improved for the second month in February, the results of a closely watched survey show. (Market News Provided by RTTNews)