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Deckard

U.k. Consumer Confidence Rises To 14-month High On Optimism For Recovery

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http://www.bloomberg.com/apps/news?pid=206...id=a.Wr0_.inkVI

June 30 (Bloomberg) -- U.K. consumer confidence increased to the highest level in 14 months in June as shoppers became more optimistic that the recession is past its worst, GfK NOP said.

An index of sentiment rose 2 points to minus 25, the strongest result since April 2008, the market researcher said in an e-mailed statement today in London. The gauge of confidence about the economic outlook for the next year climbed 8 points to minus 8.

Unemployment claims rose less than economists forecast in May, and business surveys have indicated that the economic slump is starting to abate. Bank of England officials say that the credit squeeze threatens to delay a recovery and data yesterday showed net mortgage lending rose at the slowest pace since records began in 1993.

“Confidence still remains fragile as uncertainty about the strength of any recovery and an increase in unemployment all mean that consumers remain wary,†Rachael Joy, an analyst at GfK, said in the statement.

Four out of five indexes used to compile the confidence report rose on the month, including measures reviewing and predicting personal finances and the general economic situation. The only decline was on the gauge showing the climate for major purchases, which fell four points to minus 26. GfK questioned 2001 people from June 12 to June 21.

Unemployment Claims

Claims for jobless benefits rose in May by 39,300, a third less than economists forecast, the smallest increase since July last year. The broader unemployment measure using International Labor Organization standards increased to the highest since November 1996 in the three months through April.

The Bank of England kept the key interest rate at a record low of 0.5 percent this month and reiterated its program to stoke economic growth by buying 125 billion pounds ($207 billion) of bonds with newly created money. Deputy Governor Charles Bean told lawmakers that the worst of the economic contraction may be past and consumer spending has been “more resilient than one might have expected.â€

At the same time, Governor Mervyn King said he feels “more uncertain now than ever†on the strength of the economic recovery as officials work to resolve problems in the banking system. He affirmed forecasts that the economy won’t return to growth on an annual basis until the second half of 2010.

Edited by VoteWithYourFeet

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Don't mistake the natural highs experienced in a nice summer snap for the real health of the economy. It's just misplaced sentiment.

But hey, all those lovely legs out and slinky summer tops on our busty British women make me feel fantastic!

Come back to the polls in February. Especially after the general election.

Edited by cashinmattress

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It's sunny everything it is great.

You also have to couple it with the media's positivity since the G20. Most people are not seeking out bad news so if they are not fed it in the Papers and the News then as far as they are concerned things are ok.

I think we have reached the point were we have to wait for all the excess money to be purged from the systems which is happening in the housing market/stock markets atm with a massive spell of wealth destruction being set up. Once the latency has gone from the financial system reality will be found and it could even catch the authorities off guard as they may have believe through propaganda they have essentially fixed all the problems.

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I think we have reached the point were we have to wait for all the excess money to be purged from the systems which is happening in the housing market/stock markets atm with a massive spell of wealth destruction being set up. Once the latency has gone from the financial system reality will be found and it could even catch the authorities off guard as they may have believe through propaganda they have essentially fixed all the problems.

Ah, but there's more more "excess money" being injected into the Japanese economy as we speak...

June 30 (Bloomberg) -- Japan’s unemployment rate rose to a five-year high in May, while household spending unexpectedly advanced as the government distributed cash to help lift the economy out of its worst postwar recession.

...

The government has given cash handouts of at least 12,000 yen ($125) to each resident, as well as tax breaks for fuel- efficient cars and incentives for buying eco-friendly televisions, refrigerators and air conditioners. The measures have helped lift consumer confidence to a 14-month high. Sales of electronics are up 18 percent since the government introduced incentives to buy energy-efficient goods, according to Tokyo- based researcher Gfk Marketing Service Japan Ltd.

http://www.bloomberg.com/apps/news?pid=206...id=a90dAL94wEos

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Ah, but there's more more "excess money" being injected into the Japanese economy as we speak...

http://www.bloomberg.com/apps/news?pid=206...id=a90dAL94wEos

This is subsistence money being pumped into their economy after a couple of decades adjusting, it is not the same as the excess that was accrued in our boom that ended less than 2 years ago. This need to be destroyed through investment into falling assets.

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it could even catch the authorities off guard as they may have believe through propaganda they have essentially fixed all the problems.

I think it is cruel of the govt. to make the people think the worst is over, when another leg down is looking pretty certain.

Alternatively, they believe their own hype. If so we are going to see chaos at some point while they stand around plaintively saying 'its not our fault'.

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