Nationwide finds consumer confidence is low
Thursday, 19 January 2012 09:50
Consumer confidence in the UK was at its second-lowest level ever for December at the end of 2011.
This is according to a study carried out by Nationwide Building Society and TNS-RI, which found that only 31 per cent of Britons think now is a good time to make household purchases, while half also think it is a bad time to purchase something major such as a house or a car.
Furthermore, the respondents also expect house prices to decline by 1.3 per cent by June 2012.
Nationwide chief economist Robert Gardner said that although the news is disappointing, it is not surprising.
"Right to the end, 2011 was an extremely tough year for UK consumers," he commented, pointing out that the economy was sluggish, the jobs market was struggling and unemployment had once again risen, as had the cost of living.
"In December these concerns were likely to have been compounded by events in Europe," Mr Gardner remarked.
Although he admitted that the economy is not likely to suddenly recover this year, the expert did say that inflation should fall back and interest rates are expected to remain the same, providing some respite for consumers.
Last month, a poll carried out by uSwitch.com found that only 47 per cent of respondents felt confident about the new year and what it might bring, with 39 per cent saying they expect to be worse off in 2012 than they were in 2011.
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