Nationwide consumer confidence index shows fall in April
Consumer confidence fell slightly in April after a small increase in March, reinforcing the fragile state of the UK economy.
Nationwide Building Society’s consumer confidence index fell to 43 in April, from a figure of 45 in March that had been revised upwards.
The consumer confidence index is now 37 points below its long term average level and just four point above the record low recorded in February.
Concerns over the economic outlook in the UK, a stagnant job market and continued restraint over wages are the main factors affecting the index and causing consumers to think twice before spending.
In further data released in the report, the expectation index fell by two points to 58 in April and the spending index fell by five points to 62.
Robert Gardner, Nationwide's chief economist, said: "Consumer confidence remained subdued in April and continues to hover precariously close to the record low seen in February. At 43, the Index stands some 32 points lower than at the same stage last year, and 37 points below its long-run average.”
The survey backs up the tough outlook for UK retailers as they face a fall in profits at a time of low wage growth and tough spending cuts. If the lack of consumer confidence were to continue it would increase pressure on the Bank of England to delay a rise in base rate so as not to de-rail the economic recovery.
Mr Gardner added: "The past 12 months have seen confidence progressively fall back towards the lows recorded during the recession. It now seems fairly safe to say that the up tick we saw in March was not the beginning of any sustained resurgence in confidence.”
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