Investor confidence in UK at nine-year high

13 November 2013

Investor confidence is at a nine-year high, according to research by Hargreaves Lansdown.

The broker's latest Investor Confidence survey shows that faith in the UK economy continues to increase, rising for a third consecutive month. Some 82% of investors now think the UK stock market will be higher than it is now in 12 months' time; meanwhile sentiment for the US is moving the opposite way.

The survey, sent to 1,800 individuals on a monthly basis, asks investors their view on the prospects of six main economies - UK, Europe, Asia Pacific, global emerging markets, Japan and the US - over 6 months, one year and three years.

Currently Japan has the lowest rating from investors, with less than half (45%) of people believing its shares will be higher in the next 12 months.

Asia Pacific and emerging markets are experiencing rising sentiment, with 60% and 56% of investors respectively expecting an improvement in data from the regions, up from just 15 and 13% in June.

Adrian Lowcock, senior investment manager at Hargreaves Lansdown, says: "While confidence is growing, investors have changed their outlook for the different regions. The UK has benefited the most, with investor confidence growing as the economic outlook has been improving."

That is certainly backed up by figures from The Share Centre, which show "a trend of improving revenues and profits' from the FTSE 350 companies. The report says "the economic recovery may well be beginning to translate to companies' results".

Lowcock attributes a dip in confidence in the US to the Fed's decision not to taper, and says the outlook for Japan and Europe may have been bolstered by the relative cheapness of the markets.

This article was written for our sister website Money Observer

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