UK mood grim as household finances suffer
THE DOWNTURN in consumer confidence continued this month, according to survey data published yesterday, as falling house prices and deteriorating household finances hit the economy, while consumers are pessimistic that the government is doing anything to help.
YouGov’s household economic activity tracker (HEAT) index fell from 96 to 94 in May, continuing the downturn which started in April.
Perceived home values dropped with the index falling from 105 to 98, while households remain concerned about their finances over the next 12 months, with that component down from 74 to 71.
The headline figure was also strongly dragged down by very low confidence in the government’s handling of the economy.
The measure held at 56 this month, down sharply from a 12-month high of 72 recorded in January.
“After the promising start to the year, consumer confidence has been knocked in the last two months,” said YouGov boss Stephan Shakespeare.
“This decline came off the back of a poorly perceived budget and the ongoing news from Europe is now starting to impact as well.”
However there were some positive signs in the survey data – the forward looking job security index jumped from 100 to 105.