There was no change in consumer confidence in July, according to the latest GFK/NOP survey. The index remained at -29.
This is the seventh month in succession that the index has remained mired between 29 and 31 and comes after official data revealed that the double-dip recession accelerated in the 2nd quarter which saw a contraction of 0.7 per cent. The UK is now in the middle of the worst double-dip recession since records began.
The low level of the consumer confidence reveals that government initiatives to improve the economy are having very little effect on the public mood.
Nick Moon, Managing Director of Social Research at GfK, comments: "Things are looking very bleak for the government. This is the third month in a row the Index has not changed and consumer confidence has been stuck between -29 or -31 for the last seven months. This is a clear indication that all attempts by the Government to improve the situation in the UK aren’t making any impressions on the public mood.”
The consumer confidence index looks at five separate measures, three of which rose by one point in July. The personal finance index remained the same at -23 and is two points lower than it was in July 2011.
The general economic situation index fell by one point to -59, two points lower than in July 2011.
The climate for major purchases index rose by two points to -26, five points lower than this time last year. Meanwhile, the savings index fell by four points to -15, eight points lower than in July 2011.
Howard Archer an economist at forecasters IHS Global Insight believes consumers’ confidence is deeply ingrained.
He said: “Unsurprisingly given recent largely disappointing news, consumers’ already bleak views of the economy’s performance over the past 12 months edged down further in July although there was a marginal reduction in pessimism over the economic outlook for the coming year.
“Meanwhile, consumers’ views of their personal financial situations remained mired at weak levels in July.”
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