UK Consumer Confidence Gains, Home Prices Inch Up

Consumer confidence in the U.K. increased by the second largest amount on almost 40 years of records on a boost from the Royal Wedding and improving signs for the overall economic recovery, according toThe Daily Telegraph. On Friday, theGfK NOP Social Researchconsumer confidence index was reported 10 points higher in May than the month before at -21, which marked the sharpest increase for the gauge since May 1993. Despite the strong gain, the group warned that the index was still in negative territory, and worse than the level of -18 recorded one year earlier.

Nick Moon, the managing director of GfK, said, “We have seen an almost unprecedented jump in consumer confidence this month,” adding that it is “far too early to know whether this could be the start of an upward trend. The reported pointed to warm weather, the Royal Wedding, and extended bank holiday weekends for the big jump. A separate report fromNationwideshowed that its home price index added 0.3% in May, adds金融时报》. The gain more than reverses a 0.2% loss the prior month, although prices remain 1.6% lower year-over-year.

Click here to read the story on consumer confidence from The Daily Telegraph.

Click here for coverage of home prices from Financial Times.