Tags: UK | Consumer | Morale

UK Consumer Morale Falls to Lowest Since May 2009

Wednesday, 11 Aug 2010 08:43 AM

British consumer morale fell to its lowest since May 2009 last month as households took a bleaker view of the outlook following June's austere budget, building society Nationwide said on Wednesday.

Rising food and fuel costs may also have played a part in the drop in Nationwide's consumer confidence indicator to 56 in July from 63 in June, which was driven by a sharp fall in households' sentiment about the economy, job market and income over the next six months.

July's survey of 1,000 people was carried out from June 21 to July 18, making it the first since finance minister George Osborne's June 22 emergency budget.

Osborne announced 25 percent spending cuts for most government departments as well as a rise in value-added tax on Jan. 1 next year.

"There appears to be a growing concern among consumers as to their level of disposable income in the months ahead," said Nationwide chief economist Martin Gahbauer.

"July will have been a time for many consumers to reassess their individual circumstances following the chancellor's emergency budget, and inflationary pressures, such as rising food and fuel costs, may now be leading to more negative sentiment," he added.

The Nationwide series hit a two-year high of 84 in February and has fallen steadily since, adding to the weight of data suggesting that GDP growth is likely to slow sharply from the 1.1 percent recorded in the April-June quarter.

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British consumer morale fell to its lowest since May 2009 last month as households took a bleaker view of the outlook following June's austere budget, building society Nationwide said on Wednesday. Rising food and fuel costs may also have played a part in the drop in...
UK,Consumer,Morale
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2010-43-11
Wednesday, 11 Aug 2010 08:43 AM
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