UK consumers grew more confident in November as the lowest borrowing costs in almost 40 years encouraged people to borrow and spend, according to the latest report from research group Martin Hamblin. The survey, entitled, 'Let's Shop' showed the index of consumer confidence rose to 2, from 1 in October, as four out of five measures of confidence gained. The fifth was unchanged.
Consumers responded positively to the lowest borrowing costs since 1964 and their spending - which accounts for about two-thirds of gross domestic product - kept Europe's second biggest economy from sliding into recession along with the US, Japan and Germany. Gross lending to UK consumers rose to a record STG17bn in September and mortgage lending accelerated, latest figures from the Bank of England showed. An index measuring expectations for the future of personal finances remained at 13 in November, up four points from the same month last year, the survey said. Another index that gauges expectations for the future general economic situation rose to -10, from -11 in October, and has gained 16 points from November 2001. //www.fxcentre.com