9 March 2005
The building society Nationwide has suggested that credit card spending in the UK is likely to rise again during the next six months as a result of growing consumer confidence.
Figures published yesterday hint at the start of a trend leaning towards increased spending rather than saving, with the number of people looking to reduce their debts falling by five percentage points to 48 per cent.
Those intending to save more in the future are also an ever-dwindling group, falling by three percentage points to 21 per cent, Nationwide suggests.
"Consumer sentiment appears to be shifting from saving to spending and we would expect to see this reflected in retail sales figures over the next six months," commented Stuart Bernau, executive director of Nationwide.
"UK consumers appear to be more confident about the future with key measures of household income, jobs and the economy all hitting highs."
Economists have commented that the predicted rise in credit card spending is unsurprising considering that the UK economy grew by a steady 2.8 per cent in 2004 and recently enjoyed its 50th consecutive quarter of growth.
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