–UK Nationwide Jul Consumer Confidence 49 Vs 51 In Jun
–UK Nationwide Jul Spending Index 73 Vs 74 In Jun
–UK Nationwide Jul Expectations Index 67 Vs 70 In Jun
LONDON (MNI) – Consumer sentiment fell for the second month in a
row in July, having increased solidly in May, according to the latest
Nationwide Consumer Confidence survey.
The rise in May confidence was attributed to the afterglow of the
Royal Wedding and raft of bank holidays, but consumer confidence has
fallen away since then, dropping 5 points on the month in June and two
in July on the Nationwide Index.
Consumers’ view of the current economic conditions held at
extremely low levels, but expectations for the state of the economy in
six months time worsened slightly and dragged the composite confidence
indicator down from 51 points in June to 49 points in July.
The spending index, which reflects sentiment about spending on
household goods and major purchases, also fell, dropping from 74 in June
to 73.
The percentage of consumers that believe now is a bad time to make
a major purchase rose by five percentage points in July to 51%, the
survey showed.
Commenting on the report, Robert Gardner, Nationwide’s Chief
Economist, said that it was highly unlikely that confidence would
recover in the remaining months of 2011.
“Indeed, it may be that we see a further deterioration in August,
following riots in a number of UK cities and the sharp declines seen in
stock markets around the world,” he said.
The Nationwide survey adds to a picture of depressed consumer
activity in 2011.
Last week, official retail sales data showed volumes rose just
moderately in July as prices on the High Street increased at their
fastest annual pace for more than 15 years.
The minutes for the August Bank of England Monetary Policy
Committee meeting projected economic growth to remain weak in the near
term reflecting the continued squeeze on households’ real incomes.
–London newsroom: 4420 7862 7492 email: ukeditorial@marketnews.com
[TOPICS: MABDS$,M$B$$$]
