FAQs

What does the Nationwide Consumer Confidence Index (NCCI) measure?
The Nationwide Consumer Confidence Index measures the population's view of the current position and future prospects of the UK. The index takes into account the general economic situation, employment conditions and personal expectations of the months ahead.

How long has Nationwide been measuring Consumer Confidence?
Nationwide has been measuring Consumer Confidence, in partnership with TNS UK, since May 2004 and over that time has been working to establish an Index that correlates with key macro-economic indicators.

TNS is part of the same group that conducts research for the highly regarded U.S. Consumer Confidence Index issued by the U.S. Conference Board which has run since 1967 and is widely acknowledged in the States as being a key economic indicator.

What measures does the NCCI comprise?
When measuring Consumer Confidence, Nationwide looks at how consumers feel about five separate elements:

• consumers' view of the current economic situation
• consumers' view of the economic situation in 6 months time
• consumers' view of the current employment situation
• consumers' view of the employment situation in 6 months time
• consumers' expectations for their household income in 6 months time

How is the Nationwide Consumer Confidence Index calculated?
See Methodology section.

Are there any other indices?
Nationwide has developed 3 indices in addition to the Nationwide Consumer Confidence Index. They are:

• present situation index (consumers' view of the current economic and employment situation)
• expectations index (consumers' view of the economic and employment situation in 6 months time)
• spending index (consumers' view of whether this is a good time to purchase major goods, such as a house or car, or household goods)

These are calculated using some of the inputs to the overall Confidence Index as detailed in the methodology section

Data for these is available on the Data Download section of this website.

How is the Nationwide Consumer Confidence Index different from the GfK Consumer Barometer?
Both measures are based on five questions. However, all five of the NCCI questions are about how people currently feel and how they think things will change in the next 6 months. The GfK questions relate to how things are thought to have changed over the last 12 months and how they might change over the next 12 months. The NCCI therefore more accurately reflects consumer sentiment now and in the immediate future. As it reports every month, the NCCI also measures change over time.

Is the NCCI more accurate than other indices?
There is a significant correlation between the Nationwide Spending Index and the Retail Sales Index which we do not see with any other consumer indices. This suggests that it is a better measure of how consumers feel and behave on the high street. The Nationwide Spending Index correctly predicted the direction in which the RSI would move in fourteen of the last nineteen months up to December 2005.

Does the Nationwide Consumer Confidence Index link with any other indices?
The Nationwide Confidence Index is based on the US Conference Board Index as it uses the same five indicators. The questions to measure each of these indicators, have, however, been tailored for the UK. The Index is calculated using the same methodology as the US Conference Board Index.

TNS is working in partnership with Nationwide in the UK to produce the Index. In the US, TNS NFO conduct the survey for the Conference Board Index.

What is the Conference Board?
The Conference Board is a not-for-profit organisation based in the US that creates and disseminates knowledge about management and the marketplace.

The US Consumer Confidence Index, produced by the Conference Board has run since 1967 and is widely acknowledged in the States as being a key economic indicator.

How does the Nationwide Consumer Confidence Index fit with the Nationwide House Price Index?
The NCCI is a completely separate survey from the House Price Index. Any relationship will become clear over time.

How often do you speak to people about consumer confidence?
We track Consumer Confidence continuously, speaking to consumers throughout the year but analysing results on both a monthly and a quarterly basis.

How many consumers do you speak to?
We speak to at least 1000 consumers every month.

Is the sample representative of the United Kingdom?
Yes, we speak to consumers throughout the UK, including Northern Ireland, ensuring we speak to a sample that is representative of the UK population.

How often are results published?
Results are published each month, on the Wednesday before the Bank of England's Monetary Policy Committee announces its interest rate decision.

For further information please contact Katie Harper in the Nationwide Press Office.