Consumer confidence maintained

Mon, 24 Sep 2007

Job security is keeping consumer confidence afloat, which has been coupled with interest rates and subsequently mortgage repayments staying steady, one expert has stated.

Figures from the latest Consumer Barometer from Lloyds TSB Corporate Markets discovered that consumers are feeling safe in their jobs, more so than they have done in the past two years.

Chief economist at Lloyds TSB Corporate Markets Trevor Williams has said that the credit market turmoil experienced recently has not affected consumer confidence.

Furthermore, Mr Williams remarked mortgage repayments have not increased which has helped confidence remained buoyant.

"The decision to maintain interest rates in September meant consumers will not, for the time being, see further increases to their mortgage payments and other debts," he commented.

According to Mr Williams, optimism has increased throughout September, but looking ahead the situation could deteriorate.

Weaknesses in the housing market show that consumer confidence could take a fall in 2008, he stated.

In related news, the Council of Mortgage Lenders has stated that first-time buyers will not be affected significantly more than other mortgage holders following the credit crunch.

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