The news out of the US, although not 100 per cent satisfactory, was enough to avert chaos on the world bourses at the start of the New Year. There was a dramatic rise in the indices immediately after the announcement was given. This news should have an impact on our confidence index especially for the factors within the stock market category for January.
| Investors Chronicle Confidence Index | |||
| Month | December | November | October |
| Index value | -29 | -28 | -28 |
Confidence takes a year-end knock
There were very little changes within the factors between November and December and it was houseprices that let the side down. During December 11 out of the 13 regions of the UK reported property price falls and it was very much a case of a North/South divide. The price of a typical home dropped by 1 per cent over the year and is now worth £162,262. Robert Gardner, Nationwide's chief economist states: "The uncertain outlook for the wider economy is also likely to have kept many potential buyers on the sidelines, unwilling to make such a major financial commitment until they feel more optimistic about the future. Indeed, despite the rise in employment over the past 12 months, consumer confidence has remained well below normal levels".
