This content is from: Innovation

UK Consumer Confidence Plummets To Record Low

Consumer confidence in the U.K. reached the lowest level on record as sentiment plummeted on concerns of the weak labor recovery and looming spending cuts, according to The Daily Telegraph.

Consumer confidence in the U.K. reached the lowest level on record as sentiment plummeted on concerns of the weak labor recovery and looming spending cuts, according to The Daily Telegraph. On Friday, Nationwide reported that its consumer confidence index for the U.K. dropped 10 points in February to a reading of 38, surprising economists who had expected little change from a reading of 48 the previous month. The bleak view of consumer confidence comes as Chancellor George Osborne prepares to unveil the budget, adding pressure Osborne to act to calm Briton’s fears.

The report not only showed the lowest reading for the headline figure since records began in May 2004, but also showed Britons expect inflation to remain above 4% over the next year, which is the highest rate forecast in the survey since August 2008. The poll showed the majority of respondents plan to save more, potentially threatening the contribution of consumer spending to the recovery. Meanwhile, a separate report from the National Institute for Social and Economic Research reported that unemployment will continue to climb this year on public sector job cuts, and that the recession has left a “scar” on the country’s employment. The think-tank forecast suppressed levels of output for the economy until 2013.

Click here to read the story on consumer confidence from The Daily Telegraph.

Click here for coverage of the NIESR report from The Daily Telegraph.

Related Content