There was an improvement in consumer’s financial situations in in the last quarter of this year ending with June 2009. This is the second time that consumers have been faced with falling inflation and low interest rates which in essence helped with bolster their household budgets.

This information is according to a study from Alliance Trust. The report indicates that the current standings are the best since the first three months of 2008.

This has been due to a cause in a lower inflation rate in addition of better real income and a lowering of some household costs. Lower mortgage rates have also had a part to play in this matter as it allows the household to keep more of its income in comparison to other time periods.

The study from Alliance Trust showed that the Financial Reality Index rose again since the second quarter of 2008 following some consecutive falls during 2007.

With the recession and unemployment in full play, consumers should be warned that this could be a temporary matter that is subject to change. Homeowners should still be concerned about their spending habits with the intention of being as frugal as possible.

The head of research at Alliance Trust, Shonna Dobbie, states, "Today’s results provide yet more hope to consumers that the critical situation they are in is beginning to ease slightly, Despite the ongoing improvement in our Financial Reality Index, the overall outlook for consumers is tough, with economic activity remaining weak and unemployment continuing to rise.”

She finished by saying, “Until this situation improves significantly, we cannot expect household expenditure to improve markedly, and we anticipate that consumer spending will remain weak through the reminder of 2009.”