Consumers 'worried about economic future'
Published On 29 May 2007
Some consumers in the UK are unsure whether economic growth can continue over the next 12 months and are worried that interest rates will increase further in the future, a new study suggests.According to investment management firm Selftrade, 62 per cent of UK consumers are concerned that interest rates will increase again within the year, potentially making it harder for them to make repayments on loans, credit cards and mortgages.
Over a quarter (26 per cent) think that their job will be threatened in the next year and 18 per cent think that UK lending market is heading for a period of negative equity.
In total, 14 per cent of the 2,000 people questioned thought that the UK could enter a recession in the next year.
"Our research shows that people are feeling unsure about the UK economy," explained retail marketing director of Selftrade Neil Jamieson.
"This has obvious knock-on effects on people's perceptions of job and financial security in the near term."
Earlier this month, the Monetary Policy Committee decided to increase interest rates to 5.5 per cent to try and curb inflation.
