Consumer confidence close to all-time low

Consumer confidence in the UK suffered a fourth consecutive month of decline in September, building society Nationwide has revealed.

The mortgage lender's consumer confidence index dropped three points last month to 45 points, ten points lower than a year earlier and "perilously close" to its all-time low of 41.

It said economic growth is expected to remain weak over the next six months, but a new injection of funds totalling £75 billion from the Bank of England announced earlier this month could "provide some support for confidence going forward".

The survey also revealed that 80 per cent of consumers believe there will be no improvement in the economic conditions over the next six months, even though a quarter still think now is a good time to make a major purchase.

Robert Gardner, Nationwide's chief economist, remarked: "These relatively downbeat findings are understandable given the challenging economic backdrop. The economy has hardly grown in 2011 and pressure has continued to mount on household
budgets.

"Labour market conditions have deteriorated, with the unemployment rate moving up to 8.1 per cent in the three months to August, its highest level for fifteen years."

These figures come after a surprise rise in retail sales of 0.6 per cent in September, according to the latest figures from the Office for National Statistics.

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