Britain’s takes a dip in inflation as sign of positive times ahead

In a positive break from the negative gloom that has surrounded British economy for a little more than two years the inflation figures were reported to be lower than before. This eventually made the consumer confidence surge which was riddled with a lot of pessimism recorded the highest in April 2010. While the consumers start spending with a better mindset and outlook towards the resurging economy, analysts believe that this can be taken as the start of return of comprehensive stabilization. According to the surveyor Markit’s Household Finance index, consumer pessimism reduced and markets saw an upswing with intuitively could be expected to be reflected in employers feeling more comfortable in increasing their workforce and also increasing the wages for the ones they have already in their recruitment.

The main repercussions could also be seen in the stabilization of the debt levels and household’s appetite for major purchases. While this change in consumer moods with respect to making bigger purchases has been accompanied with better outlook this was not the case before. A major and perhaps the positive difference was the return of consumer confidence and increase in purchases made per household. The trend was more pronounced in the country’s urban centers. This can be directly linked with the prudence that was exercised by many Briton’s by stalling their major and most expensive purchases. The very welcome news that could however be given in reference to a better future outlook would be related to the change in employer attitudes.

According to Chartered Institute of Personnel and Development (CIPD), there could be a change in employer’s pay intentions as well. A survey revealed many employers were expecting to increase the wages for their employees and this was the first time they felt so decisively about it since spring of 2009. As noted by financial experts, the rising housing prices and mortgage prices was a reason consumers could spend substantially before the financial crisis, the stricter mortgage processes and the housing market that has slowed down drastically seem to the main reasons for consumer’s low confidence in this space.

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