UK consumer confidence near record low

The index of consumer confidence by GfK NOP one point higher to -35 which reveals that consumer confidence increased slightly last month.

The reason why the index is still low is due to the fact that people are still struggling to comprehend the job losses that have been experienced and announced and companies make cut backs in order to survive.

The index was especially low in October, due to the severity of the financial markets and the uncertainty that it caused, according to Rachael Joy at GfK NOP.

The latest survey shows that peoples’ confidence in their personal financial situation over the next 12 months has risen two points, but they are increasingly concerned that now is not a good time to save.

Worryingly, confidence is still 25 points lower than this time last year and even the cut in interest rates to 3 percent is still quite unlikely to make a big difference and consumers are holding onto their cash in these very uncertain times.

The survey revealed a positive note that there is a four point increase in how confident people were in spending money on major purchases, such as furniture and electrical goods. However, that is partly due to the huge discounts retailers are offering to entice shoppers back to the high street.

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