"…a significant and sustained rise in consumer confidence remains unlikely in the near term"
- Mervyn King, Bank of England Governor
U.K. consumer confidence rose in January as consumers became more optimistic on the outlook of the country's economy, estimated the Nationwide Building Society. An index of sentiment rose to 47 from 38 in December.
"Looking forward, renewed hope that the UK will avoid a double-dip recession may support sentiment, especially since the downward trend in inflation is set to continue through 2012," said Robert Gardner, Nationwide chief economist.
"With the UK recovery likely to remain weak in the first half of the year, a significant and sustained rise in consumer confidence remains unlikely in the near term," added Mr. Gardner.
"The path of recovery is likely to be slow and uncertain," said Bank of England Governor Mervyn King. "The biggest risk to the recovery stems from developments in the euro area, where there remain concerns about the indebtedness and competitiveness of some member countries."
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