–UK Nationwide Sep Consumer Confidence 53 vs 62 in Aug
–UK Nationwide Sep Spending Index Lowest Since Nov 2008
–UK Nationwide Sep Expectations Index 73 vs 85 in Aug
–UK Nationwide Sep Spending Index 85 vs 99 in Aug

LONDON (MNI) – UK consumer confidence plunged in September, and
consumers’ propensity to spend has fallen back to levels last seen in
the depths of the recession, according to a survey for Nationwide.

The Nationwide Consumer Confidence Index fell to 53 in September
from 62 in August and the spending index plunged to 85 from 99, with the
latter hitting its lowest level since November 2008 and dropping below
its long run average of 92. The data raise concerns over the strength of
consumer demand and will add to fears over the UK recovery’s loss of
momentum.

The Nationwide survey found marked falls across all categories. The
present situation index dropped to 22 in September from 29 in August and
the expectations index fell to 73 from 85.

With a reading of 53, the headline Consumer Confidence Index fell
to its lowest level since March 2009, when it stood at 41. It was also
well below its long-run average of 83.

Martin Gahbauer, Nationwide’s chief economist, noted the
expectations index has dropped by 47 points since February of this year.

This may suggest “a growing anxiety among consumers about the
strength of the recovery and their own personal finances. This index is
now creeping towards the historical low of 56 points reached during the
recent recession and it will need a significant shift in sentiment to
reverse this downward trend,” Gahbauer said.

He cited widespread coverage of looming public spending cuts as one
factor weighing on consumer sentiment.

Consumers were markedly more negative when asked about spending on
big-ticket items, such as cars, than they have been in recent surveys.

They are, however, not yet convinced that house prices will fall in
the near future, with the survey showing consumers on balance expect
house prices to rise 0.1% over the next six months.

The Nationwide Consumer Confidence Index survey was carried out
between Aug 23 and Sep 29 and compiled TNS-RI for Nationwide.

–London newsroom: 4420 7862 7491 email: drobinson@marketnews.com

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