–GfK/NOP: UK July Consumer Confidence -30 vs -25 in June
–GfK NOP: Confidence Falls Across All Five Sub-Indices
–Squeeze On Domestic Demand Seen Continuing, Intensifying

LONDON (MNI) – UK consumer confidence fell further in July, wiping
out almost all of the record monthly gain seen in May on the Royal
Wedding/public holiday feelgood factor, according to the latest GfK NOP
Consumer Confidence Index.

The GfK NOP Consumer Confidence Index fell to -30 in July from -25
in June and -21 in May, leaving it just above the 26 month low of -31
recorded in April, prior to the May bounce.

GfK NOP said that the survey evidence showed consumers becoming
particularly anxious about prospects for the economy as a whole as well
as for their own personal financial situation – threatening a
continuing, even intensifying, squeeze on domestic demand.

Nick Moon, Managing Director of GfK NOP Social Research, comments:

“Consumer confidence has shown the second major fall in a row …
It’s becoming clear that May’s positive surge was the exception rather
than the norm, as we return to -30 – wiping out almost all of May’s
rise.”

Prior to the April and June outturns this year, the GfK index has
only run at levels of -30 or below between June 2008 and March 2009 and
between March and May 1990. The all time low was -39, posted back in
July 2008.

All five elements of the index fell in July with largest drop, of
9 points, in consumers economic expectations over the next 12 months,
with this measure dropping to -27 from -18.

When this economic pessimism is “combined with people’s pessimistic
expectations for their own finances over the next year, retailers can
expect tough conditions to persist for a while yet – threatening an
already fragile recovery,” Moon added.

Consumers were also less confident about the economic situation
over the past 12 months in July than June (-57 versus -50).

As regards their personal financial situation, consumers were also
less confident (-25 vs -20) for the past 12 months and for the next 12
months (-12 vs -8).

The major purchase index fell to -31 from -27.

–London newsroom 44207 862 7492; email: dthomas@marketnews.com

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