InTheNews.co.uk
Breaking News:
Your source for news

News Story

 12 May 2008 16:00 BST

Consumer confidence at 16-year low

Wednesday, 30 Apr 2008 08:27
More woe for consumers in April
The outlook of UK consumers fell to its gloomiest since November 1992 in April, research has shown.

The GfK NOP consumer confidence index now stands at minus 24 points - compared with minus six points a year ago.

Rachael Joy, of the consumer confidence team at GfK NOP, said: "This month's drop has been mainly driven by dropping confidence in the general economy over the last 12 months.

"With the news dominated by stories of recession, the credit crunch, housing market falls, and future petrol and food price increases, it will take more than a quarter point reduction in interest rates to alleviate the current gloomy mood of the UK consumer."

All GfK NOP research saw sentiment over the general economic situation for the next 12 months fell six points to minus 38, while people's predictions for their own finances for the coming year fell four points to zero on the index.

Meanwhile the consumer barometer from Lloyds TSB Corporate Markets found despite official labour market data remaining strong, confidence in the health of the UK job market dropped sharply.

Some 47 per cent of those polled said employment prospects in the UK were set to improve, 39 per cent thought they remained stable.

A total of 21 per cent felt less secure in their jobs, with the index falling five points.

Trevor Williams, chief economist, Lloyds TSB Corporate Markets, said: "With recent headlines predicting City job losses, it's not surprising that labour market confidence is on the wane. But look at the official data and in fact the opposite is true; the market remains in rude health with unemployment at its lowest level for 30 years.

"The combination of falling labour market confidence and growing inflation fears does not bode well for consumer spending. But as long as official data remains strong, April's waver in confidence should be just that and figures could rebound in coming months."End of story

More headline news... 

Also In The News 

© 2008 Advertise | Privacy | Terms of Use