British consumer confidence on its way to recovery as HEAT Index sustains high scores
- YouGov’s HEAT index sustains a high score of 98 – consumers remain more positive about the British economy
- Confidence in business activity continues to rise (now at 123)
- Britons stable about their household financial situation
- Surge in prospective home value scores amongst British homeowners – up from 96 to 108
YouGov’s latest Household Econimic Activty Tracker (HEAT) results confirm March’s interim findings; consumer confidence is not only on its way to recovery but sustaining its momentum – the HEAT index score for the month is revised down by just one point from 99 to 98, and up from 93 in February.
Figure 1: UK HEAT Index
Source: YouGov Household Economic Activity Tracker, March 2012
Note: Based on interviews of 6,772 UK residents conducted from 1st – 31st March 2012.
Index score is derived from consumer sentiment on 4 metrics (home prices, job security, family financial situation, and business activity) measured retrospectively and prospectively.
March’s results indicate that Britons have not seen an improvement in their own financial situation but are starting to feel increasingly positive about the UK economy in general – the surge in scores seen in mid-March maintained their impetus throughout a month which included the announcement of the Budget.
Job security and business activity levels have seen gains with prospective job security among Brits at 105 (up from Februarys 102 and a low in December of 96), and prospective business activity levels increasing to 123.
There has been a big increase in prospective home value scores amongst British homeowners – with a surge in scores - up from 96 in February to 108. This hike in scores had previously been driven by respondents moving from ‘lower’ to ‘no change’; however in March, we have seen a solid uptick amongst those expecting ‘higher’ values in the next 12 months.
Britons confidence about their household’s financial situation remains stable with scores largely unchanged since the beginning of 2012; retrospective and prospective household financial situation scores remain the same – at 80 and 74 respectively.
Stephan Shakespeare, CEO of YouGov plc, commented on the findings: “The final HEAT results for March confirm the positive news that we had seen in the middle of the month and indicate that consumers are really starting to feel more confident about the prospects for the British economy. What they are yet to see though is an improvement in their own financial situation.”
See the full details and original press release for HEAT March 2012 here
