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'Olympic effect' boosts confidence

29/08/2008

Consumer confidence improved slightly in August - possibly due to a boost from the Olympics.

The index, which measures the consumer outlook each month, rose three points from July to -36 in August. However, this was still 32 point lower than last year, GfK NOP said.

Rachael Joy in the consumer confidence team at GfK NOP, said: "We have seen a small improvement in consumer confidence in August, but this should not be seen as a turnaround in core sentiment.

"In particular, winning gold medals in the Olympics seems to have had a lifting effect. When we looked at the Index score before and after the Olympic weekend, the score rose three points between the first and second weekend.

"This, combined with summer holiday euphoria, may have helped lift consumers' perceptions of their personal situation and the general economy."

Consumers do seem slightly more optimistic, with the index measuring changes in personal finances during the last year increasing by four points to a score of -16.

The forecast for next year has also risen, by six points to a score of 12.

For the general economic situation, the index is unchanged from last month at -69, while expectations for the next 12 months have risen by five points to -47.