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07 July 2006
Consumer confidence in the current state of the economy and employment has fallen to its lowest ever level, a new report shows.
Nationwide's monthly Consumer Confidence Index shows that despite the start of the sunny summer weather, only one in three people are feeling positive about the current state of the economy, which is the lowest level ever.
Consumers are increasingly looking to the future, with those feeling confident about how they expect the economy, employment situation and household income to be in six months on the rise this month, its second consecutive increase since January.
"Amidst the general gloom the one glimmer of hope is the fact that people's expectations of the future have picked up slightly over the past three months," said Nationwide's executive director, Stuart Bernau.
"This could be the spark that kick-starts a wider recovery in confidence later in the year, particularly if interest rates remain unchanged."
Consumers seemed increasingly unsure about the economic situation, with a growing number of respondents answering 'don't know' when asked their impressions, while expectations on house price rises fell slightly, with customers now expecting house prices to rise 2.7 per cent over the next six months, compared to 2.8 per cent last month.
If a rise in house prices or in interest rates affects you and your financial commitments, order your credit report now and find out where you stand.
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