Home.co.uk
Home.co.uk

News: Consumers still down in the dumps?

Fri, 11 Apr 08

Nationwide's latest survey reveals some interesting things about consumer confidence...

The Nationwide Consumer Confidence Index ticked down only one point to 77 in March. This modest drop continues the trend of monthly falls in consumer confidence, which started in the autumn and reflects weakening house price growth and ongoing uncertainty in the financial markets.

Consumers’ feelings about the present situation are much weaker than this time last year, when the index stood at 87, but two thirds of consumers still think the current economic situation is good or normal.

Fionnuala Earley, Chief eEconomist at Nationwide, said: “The downturn in consumer confidence over the last six months is not surprising given developments in the financial markets and a weakening housing market.

“The effect of recent interest rate cuts has yet to trickle through to people’s pockets, particularly as food and energy costs are still high. Consumers may begin to feel more comfortable following the expected cut to rates this week, but it is unlikely that confidence levels will increase in the short term.”

Back to: News Index