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British Households “Feel Richer” After the Election According to Poll

British Households “Feel Richer” After the Election According to Poll

The confidence in personal wealth and the UK economy in Britain has escalated since the general election, according to a new report. Confidence within British households is now believed to be reaching pre-financial crisis levels once again, so what is it that’s caused people to feel richer?

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The Conservatives election victory is set to result in a period of stability that has subsequently ribbed off on British households, with consumers revelling in the benefits of both an increase in wages and falling bill costs. Financial optimism evidently rose in May and is now almost as strong as it was exactly a year ago. It is also second to April 2007 according to an index by YouGov and the Centre for Economics and Business Research.

According to one in eight people in Britain, household budgets had improved in May which market the biggest percentage since this question was first asked in February 2009. People who complained about household finances worsening also dropped, reaching a percentage that was the lowest ever recorded on survey. The survey asks 7,000 people each month about the financial situation.

This is the second month in succession that people are expected to feel confident about money improving in their case throughout the rest of the year, with a  much smaller percentage of people preparing for a deterioration in their finances.

The head of YouGov, Stephen Harmston, had this to say on the recent reports of a rise in financial confidence within British households. “With the election now over, consumer confidence has strengthened and is now close to where it was before the financial crisis. People are now increasingly optimistic about what will happen over the next year”.

So what exactly has contributed to a rise in the confidence felt across homes in Britain? Firstly, the drop in the cost of living has no doubt helped thousands of people to feel a lot better about their financial situation. This is down to a reduction in the prices of oil and food over the last 12 months. Ina addition, for the first time since the 1960’s, in April Britain was found to be in deflation according to the Office of National Statistics.

All of these factors have contributed to greater confidence and subsequently we have seen households across Britain urged to take full advantage of the welcome boost to spending power. Chancellor George Osborne stated that the figures were “good for family budgets”.

There has been even more optimism financially over the last month that may well have contributed to the emphatic level of confidence demonstrated in the survey. Wages have begun to increase after a period of stagnant salaries. To top it all off, there are fewer consumers believing the UK is in a recession than at any point on record, which has led to an increase in positivity related to job prospects and personal finances.

Despite this, the economy is believed to have slowed somewhat with no change in a disappointing GDP that grew by just 0.3 per cent in the first quarter. While economists had hoped for more, it seems that confidence will come from the increasing number of consumers prepared to spend.

Article supplied by www.private-office.co.uk, a wealth management consultancy firm based in West Sussex.

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