UK consumer confidence dips further in July


A survey of 2,000 individuals, conducted between July 1 and 10, has revealed a fall in consumer confidence.

According to the survey of consumer attitudes, carried out by GfK NOP Social Research, confidence dived by 5 points to -30 in July – edging closer to the -31 seen in April.

The index was also worse than a reading of -27 expected by economists and follows the 4 point fall in June.

Commenting on the findings, managing director Nick Moon said: “What will concern the government most is that the biggest drop of nine points was in people’s expectations of the performance of the economy over the next 12 months.

“When combined with people’s pessimistic expectations for their own finances over the next year, retailers can expect tough conditions to persist for a while yet - threatening an already fragile recovery.”

Retailers are suffering as consumers cut back on spending in the face of higher inflation and rising unemployment.

A number of well-known retailers have fallen into administration over the last month, including Habitat, Jane Norman and TJ Hughes.

Furthermore, Mothercare, Thorntons and HMV all announced store closures last month.

Meanwhile, in other news today, the Nationwide revealed house prices edged 0.2% higher in July.

House prices are still 0.4% lower on an annual basis with the average UK home costing £168,731.

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