Consumer confidence hits six-month low

| October 31, 2012
Consumer confidence hits six-month low

Although the UK has officially emerged from recession, consumer confidence fell to -30 in October from -28 in September, according to market researcher company GfK NOP.

This is the lowest level of consumer confidence since April when the UK was in an economic slump.

Analysts had expected the index to remain stable at -28.

Respondents to the survey said they were pessimistic for both their own finances and the wider economy in the coming year and did not plan to make major purchases.

Nick Moon from GfK said: “The late summer boost in consumer sentiment has now faded.

“The government will be concerned that the economic bounce will follow a similar path and deflate during the autumn.

“People are more worried about their own financial situation over the next 12 months.

“This certainly doesn’t suggest there will be a spending boom on the back of the official emergence from recession,” he added.

Meanwhile, former deputy prime minister Lord Heseltine has published a report urging the government to increase investment in UK regions to boost economic growth, rather than focusing on London.

In his report, Lord Heseltine recommends the development of a long-term strategy for economic growth including £250,000 of new public funding for local enterprise partnerships.

He is calling for the formation of a national growth council to focus on generating economic growth and wealth.

His comments have been welcomed by business leaders.

John Cridland, the director-general of the CBI, said: “His key point is that we need more local action and leadership, which must be right.

“To successfully rebalance the economy towards private sector growth, every part of Britain needs to grow – we mustn’t just rely on the usual suspects of London and the South East.”

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