Small rise in consumer confidence in April

The Nationwide Building Society Consumer Confidence Index rose by one point to 74 in April. The index is now 23 points higher than at this time last year.

Faith in the present situation improved in April, while expectations for the future fell for the second consecutive month.

At 104 the Expectations Index is now 14 points below its record high seen in February.

Confidence grows in the employment situation.

Consumers displayed greater optimism towards the present and future employment situation in April with confidence picking up across both of these measures.

This comes against a backdrop of expected public spending cuts post election and increasing unemployment figures for the UK.

There was little change to confidence in the present economic situation during the month.

Mark Saddleton, Nationwide's head of economic and market analysis, said:"As the UK braced itself for a period of political uncertainty, confidence remained broadly stable during the month of April - potentially a result of consumers maintaining a reserved outlook in the run up to the recent General Election. This stability has done little to repair the nine point fall seen in March's figures after the index had reached its highest level for two years in February. Confidence is now 23 points higher than at the same time last year. However, further increases may be muted as consumers wait to see what impact a hung parliament and the deficit reduction plans of a new government will have on the economy and employment situation. With confidence still fragile following the recent recession, there is a very real possibility that the index could experience further volatility in the coming months if uncertainty remains following the formation of a coalition Government."