Consumer confidence wanes as economic worries remain
CONSUMER confidence dipped slightly in November – the first time in over a year that the index has fallen – after recording the highest level of consumer confidence in a year and a half only last month, GfK NOP will today report.
Four out of five measures of consumer confidence experienced a marked downturn: confidence in the general economy over the last 12 months reversed by six points to -59 and the “major purchases index” fell by seven points to -19.
The savings index defined as the “now is a good time to save” index also fell 14 points from this time last year when the economy was in the eye of the recession. The overall consumer confidence index fell four points to -17.
Last month the benchmark interest rate was at a record low of 0.5 per cent and the Bank of England’s decision earlier this month to pump in more money into the economy means a further downward pressure on interest rates, making savings less attractive.
Last month’s upbeat consumer confidence index indicated a growing belief among consumers that the future outlook is a brighter one.
But today’s news confirms that the UK’s economic recovery is still on shaky ground.