–Confidence At Lowest Level Since March 2009
–UK Nationwide Nov Consumer Confidence 45 vs 52 in Oct
–UK Nationwide Nov Expectations Index 61 vs 70 in Oct
–UK Nationwide Nov Spending Index 79 vs 92 in Oct
–Consumers Get More Pessimistic On House Market Outlook
LONDON (MNI) – Consumer confidence fell for the third consecutive
month in November, dropping by seven points to 45 – its lowest point
since March 2009 and well below its long-run average of 82, according
to Nationwide.
The decrease in sentiment has been driven by falls across all of
the component measures in November, in particular the Spending Index
which fell by a substantial 13 points from 92 to 79, Nationwide said.
The Spending Index has now reached its lowest level for two years
and is 29 points lower than at the same time last year.
The Present Situation and Expectations Index also saw a decrease in
sentiment in November with these falling by five and nine points
respectively.
The Present Situation Index now stands at the same level as 12
months ago while, in contrast, the Expectations Index has fallen by 51
points over the same period.
Consumers expressed a growing pessimism towards the housing market
in October and now expect the value of their home to decrease by 1.4%
over the next six months. This compares to a decrease of 0.9% predicted
in October.
Martin Gahbauer, Nationwide’s chief economist, said:
“Despite the approach of the holiday season, there was a noticeable
absence of festive cheer in November. Consumer confidence continued its
downward trend during the month leaving the index close to the historic
lows recorded at the beginning of 2009,”
“Just as the improvement in sentiment was driven by a renewed hope
for the future, the fall in confidence can largely be attributed to
consumers growing increasingly cautious over the outlook for the next
six months,” he added
–London newsroom: 4420 7862 7491 email: wwilkes@marketnews.com
[TOPICS: MABDS$,M$B$$$,MT$$$$]
