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03 May 2006
Consumer confidence in the economy has fallen to a new low, reveals new statistics.
Nationwide's Present Situation Index - a measure of how confident British consumers are in the present economic situation - fell two points in April to its lowest ever level of 90 points.
Both the Consumer Confidence Index and the Expectations Index - a measure of public confidence in the economy's future, also fell by two points over the period, as Brits worried about unemployment and rising utility bills.
"These factors will affect willingness to spend and will threaten the return of consumer spending which underpins the Bank's upbeat forecast," said Nationwide's executive director, Stuart Bernau.
Only the Spending Index and the Housing Index rose, with customers more enthusiastic to spend on high street discounts and harbouring expectations of further rises in house prices.
According to Nationwide's base rate forecast, it is likely that interest rates will not change this month, with the Bank of England taking into account the mounting pressures on consumer budgets.
If you have little confidence in your finances, order your credit report now to find out where you stand.
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