Consumer confidence falls further
Commenting on the index, Nick Moon, Managing Director of GfK NOP Social Research, said: "It was almost inevitable that there would be a drop confidence in June following last month's unique, feel-good circumstances of public holidays and the royal wedding. What will disappoint the government is that the drop is so large – wiping out half of last month’s gain and leaving consumer confidence lower than it was at any point in 2010.”
He added: "Across the board, confidence is lower than it was this time last year. Consumers' feeling about their own financial situation over the coming twelve months may have been the best scoring item but it still suffered a five-point drop in June, leaving it at -8. As we move into the summer, the outlook for the beleaguered high street remains a gloomy one."
The index measuring changes in personal finances during the last twelve months decreased two points this month to -20; this is six points lower than June 2010. The “now is a good time to save‟ index fell eight points to -9, which is five points lower than June 2010.
The bleak figures show that UK consumers' confidence in the recovery is slipping as inflation squeezes incomes at the fastest pace since the 1970s. They are also less willing to save.
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