Consumer confidence falls in June
Published On 4 July 2007
Consumers - many saddled with home owners loans and other forms of debt - are losing confidence in the UK's economic situation.That's according to the latest Nationwide Consumer Confidence Index, which dropped in June for the first time since December 2006.
Although the Spending Index rose, showing that consumers were slightly more willing to spend, both the Present Situation Index and Expectations Index fell, indicating a lack of confidence for the present time and the future.
The Present Situation Index fell from 101 in May to 98 in June; the Expectations Index fell to 93.
"The fall in confidence in June reflects some weakening sentiment about the economy and jobs, both now and in the future," said Nationwide's chief economist, Fionnuala Earley.
"Higher interest rates are likely to be a major factor behind this as consumers recognise their impact on the wider economy as well as on their own pockets. Spending confidence ticked up very slightly in June but overall it is significantly lower than this time last year."
The threat of further interest rate rises is dampening many people's confidence.
