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Saturday 27th of September 2008
August 6, 2008

UK consumer confidence falls to record low


by Kay Murchie
”UK

According to the Nationwide, UK consumer sentiment continues to fall among consumers and businesses in the service sector.

The building society said its Consumer Confidence Index fell from 62 points in June to 51 in July - this represents the largest fall since the index began in 2004 and sparks concern that a recession is looming.

The Index found that 42% of people believe there will be fewer jobs available in six months time.

Fionnuala Earley, Nationwide chief economist’s, said reports of a forthcoming recession, a slowing housing market and rising food and fuel costs have dented confidence even further.

Of those polled by Nationwide, 85% believe the economic situation will be the same or will deteriorate by the end of the year.

Furthermore, 64% believe that now is not a good time to buy large items such as a house or a car.

The report comes as the Bank of England is due to announce its decision on interest rates tomorrow. It is widely expected that interest rates will remain on hold at 5%.

A similar report last week on consumer confidence revealed that rising mortgage payments, higher food and fuel costs has meant that people are reining in their spending.

Nearly half of people said they had started buying supermarkets’ own brand of goods, while nearly a third have started shopping at discount supermarkets.

In addition, figures last week from the CBI revealed that sales on the High Street have slumped to their lowest level for a quarter of a century.

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