May saw sharp drop in consumer confidence, says Nationwide
BY myfinances.co.uk staff
A string of "unsettling" events during May, including the general election, the formation of the new government and the eurozone debt crisis, contributed to a sharp drop in consumer confidence, according to Nationwide.
The lender's latest statistics show a ten-point decline in overall confidence during the month, taking its index to 65 points.
Its Spending Index remained unchanged but the Expectations Index, which measures people's outlook for the next six months, dropped by 12 points.
Since February, this measure of confidence has fallen by 26 points.
Nationwide chief executive Martin Gahbauer said 22 per cent of consumers now believe the economy will be in a worse condition in six months' time, the highest proportion since June 2009.
He added that in addition to the events that dented confidence during May, the impending emergency Budget has also created a sense of uncertainty.
"Until the impact of this is known and consumers understand where the focus of spending cuts and tax increases will be, it is possible that confidence in the economic situation will continue to stutter," Mr Gahbauer commented.
Chancellor George Osborne will unveil his Budget on June 22nd.
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