UK consumer confidence falling.

Consumer confidence has reached its lowest on record as the UK’s prospects and increased pessimism has taken its toll.

A survey conducted by Nationwide of 1000 people has revealed that in the last month consumer confidence has fallen to 70, a sharp drop from 77 in March and 78 in February, and that analysts have predicted that the situation will become worse in the following months.

Currently food and fuel prices are very high and this situation is made worse with the faltering house prices it is difficult to see exactly how consumer confidence will recover in the current situation.

Crude oil rose to a record above $122 yesterday and in the UK motorists are feeling the pinch at the pumps along with other non essential cutbacks being experienced.

The fall in April was still heavy despite the quarter-point cut in interest rates by the Bank of England.

The labour market deteriorated last month, in the same period mortgage approvals are down by 50 percent from a year and a half ago.

House prices declined in April by 1 percent from last year, and with prices falling by 0.9 percent on the year, it is the first price drop since 1996.

The cuts have not been translated to consumers who have not benefited from the lower rates as the lack of available credit has caused most mortgage lenders to tighten up their criteria and removing their more attractive deals.

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