British consumer confidence plunges to 11-month low
British people continue to be concerned about the economic outlook after the GfK/NOP Consumer Confidence index fell for the fifth straight month in July.
The index fell 3 points to -22 – the lowest reading since August 2009 – when the economy was in the midst of recession.
The survey was conducted after the new coalition Government announced massive spending cuts but before official data showed the economy grew at its fastest pace in four years in the second quarter.
Nick Moon, managing director of GfK NOP Social Research, said: “The continuing slide in the index makes a double-dip recession look more of a possibility as each month goes by.
“It’s possible that respondents are already factoring into their view of the economy over the next 12 months the likely recessionary impact of the Government’s announcement about the level of spending cuts it wishes to make,” he added.
Meanwhile, the index measuring the general economic situation over the next 12 months declined by 13 notches to -25, while the index measuring personal finances over the coming year also fell, by 4 points to -6 – the lowest since March 2009.