Confidence boosts suggests the worst is over

Nationwide’s Consumer Confidence Index rose by six points last month, increasing to 71 from 65 in August. The Index is now 24 points higher than it was 12 months ago.

All the sub-indices recorded a rise this month, with the Expectations Index increasing by nine points to 106 – its highest level since December 2005. While the Present Situation Index remains close to historically low levels, there was a small increase of two points from 17 to 19. Likewise, the Spending Index continues to improve following a dip in July, and rose by three points in September to 102.

Mark Saddleton, Nationwide’s head of economic and market analysis, said: “September saw a much stronger increase in overall confidence compared with recent months and the Index is now at its highest level since April 2008. Expectations for the future economic situation are also buoyant