The Index also found:
* Consumer confidence rose by one point to 60 in July;
* Expectations Index increased by one point to 89;
* Spending Index fell by 11 to 94;
* Present Situation Index fell from 17 in June to 16 in July;
* Decline in confidence in the UK’s employment situation, both in the current situation and also for the future.
* In comparison to this time last year, confidence in spending is strong. However the percentage of people believing now is a good time to buy a major item has decreased from 40% to 35% from June to July.
Martin Gahbauer, Nationwide’s chief economist, said: "Consumer confidence remained broadly stable in July, with limited overall change in sentiment from the previous month. The significance of this stability is that consumers appear to be
remaining cautious, but not panicked by the economic climate.
"This lack of volatility is crucial for the economy to recover and there are clear signs that consumers think some degree of
recovery has either begun or is expected in the coming six months. Consumers might have been reassured by reports that the housing market may be starting to recover and manufacturing output is no longer falling as rapidly as it was a few months ago.
"Only 21% of people believe the economy will be worse than today in six months time. This is a dramatic improvement from the start of 2009 when this figure was 53%."
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