UK Consumers have little Confidence in Prosperity for the Near Future
The struggling UK economy is taking its toll on many within the borders and has greatly affected feelings about the future. Consumer confidence is low and going lower. Nationwide recently reported the index for consumer confidence has dropped from an already-low 45 to 36 during the month of September. This is the lowest measureable point the index has seen since its inception in the middle of 2004.
Nationwide economist Robert Gardner, commented on the low consumer confidence figure, saying: "A wave of disappointing economic news at home and ongoing uncertainty surrounding the Euro crisis have dealt a heavy blow to sentiment.”
Spending is an area which has been affected significantly, according to the survey. Gardner continued his remarks, saying: "Nearly half of consumers viewed it as a bad time to make a major purchase in October, compared to a quarter who viewed it as a good time to buy.”
Home purchases continue to be affected by the uncertainty of not just the consumer market, but the housing market as well. This has led lenders to become quite creative in their mortgage and remortgage deals they are offering. With the base rate maintained at 0.5%, mortgage and remortgage deals continue to be attractive.
The Bank of England report recently released does nothing to improve the outlook, either. They have downgraded the overall growth probability during the course of the next two years. Inflation rate is expected to remain unpredictable, as the instability in the Eurozone has yet to be rectified.