NEWS RELEASE

 

London June 3rd 2008

 

Consumer confidence hits 18 year low as wealth and income squeezed

 

UK consumers are facing up to the growing economic tremors that threaten their hard won prosperity of recent years through curtailing activity. Normally May is a month that sees consumer confidence pick up – not in 2008.

 

The GfK NOP consumer confidence Barometer slumped to –29, the lowest score for 18 years and down 27 points on a year ago when the ‘Brown Bounce’ heralded an expected revival in the Government’s prospects and house prices continued to move ahead.

 

All sub-measures of confidence fell during the month, with the measure of general economic prospects and consumers spending confidence at record lows. Other measures fell to levels not seen since the early 1990s.

 

Main survey measures point to looming recession on back of contraction in activity

 

The two measures of personal finances both fell in May. The backward looking measure fell 3 points to –11 in the month and is at its lowest since December 1995. The forecast for personal finances over the next year is down 4 points and down 17 points on a year ago.

 

General economic confidence is at its lowest for some 3 decades highlighting the enormous political difficulties faced by the Government. The backward looking measure fell 5 points to –58 in May and is some 40 points lower than a year ago and at its lowest since February 1993. The forward looking measure, down 1 point to –39 on the month is now at its lowest ever.

 

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