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Consumer confidence index hints at credit card outlook

Wed, 04 Apr 2007

Credit card customers who are feeling more confident about buying new clothes and CDs may not be the only ones, according to the findings of a new poll.

A survey from financial services provider Nationwide for its consumer confidence index has revealed that optimism rose by three points to 88 in March 2007 - the third rise in succession.

Meanwhile, confidence also rose in the expectation index, which tracks how people think the economic situation will stand in half a year's time.

The poll recorded another three point rise in March to 89, up from the record low of 81 in August 2006.

However, Fionnuala Earley, Nationwide's chief economist, expressed caution and pointed out that the index is still significantly lower than in previous years.

"Although consumers appeared slightly more upbeat in March, the overall picture is still subdued," she explained.

Last month, financing website MoneyExpert conducted research that may be of interest to credit card customers planning to travel overseas.

According to its study, three quarters of credit cards in the UK currently feature travel insurance accident cover, meaning many holidaymakers may be protected without knowing it.

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