Consumer confidence falls as Budget fuels pessimism on the UK economy
FEARS about the emergency Budget gave consumer confidence another knock in June, according to the monthly Nationwide survey published today. The overall index of consumer confidence fell for the second month in a row to 63 points, a similar level to 12 months ago. Although the present situations index rose slightly, the expectations index was at 88, its lowest level since May 2009.
Martin Gahbauer, Nationwide’s chief economist, said: “This shift can largely be credited to renewed pessimism in the future economic situation, but there does also remain noticeable concern about the state of the job market.” The number of people who believe there will be not many or few jobs available in six months’ time reached its highest level this year – 53 per cent.
The spending index also fell, dropping five points to 95. Concerns over what was to come
out of the emergency Budget may well have led to a more cautious approach to spending during June, said Gahbauer.
There was also a small fall in consumers’ optimism towards the housing market in June.