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The Index has dropped by 5 points to -29; a level not seen since November 1990.
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The major purchase measure score is now at its lowest level since this record began in 1983.
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Consumers’ confidence in the UK economy over the next twelve months has also hit a new low.
UK consumer confidence fell in in May to an 18-year low - the lowest level since Margaret Thatcher was ejected from office in 1990, as people became more pessimistic that the economy will slip into a recession, research company GfK NOP Ltd. said today.
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Rachael Joy in the Consumer Confidence team at GfK NOP commented: "UK Consumer Confidence continues its decline and we are seeing levels not recorded since 1990; we are at a massive twenty-seven points lower than this time last year.
"Consumers’ confidence in the economy over the next year, plus a reluctance to make major purchases, reflect the popular expectation of a recession - both these measures are at the lowest level on record.
"The future months may see even further fall in confidence, as increasing inflation and dropping house prices make reigning in their spending even more likely to the UK consumer.”
Consumer Confidence Measures – May 2008
The overall index score this month has fallen five points to -29, twenty-seven points lower than this time last year. This has been caused by a fall across all five measures. The annual moving average has dropped to -12.
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May 2008 |
April 2008 |
May 2007 |
| Overall index score | -29 | -24 | -2 |
| Personal financial situation over last 12 months | -11 | -8 | +3 |
| Personal financial situation over next 12 months | -4 | 0 | +13 |
| General economic situation over last 12 months | -58 | -53 | -18 |
| General economic situation over next 12 months | -39 | -38 | -10 |
| Climate for major purchases | -32 | -24 | +4 |
Personal Financial Situation
The index measuring changes in personal finances during the last year has dropped by three points to a score of -11; this is fourteen points lower than this time last year. This level has not been sen since December '95.
The forecast for personal finances over the next year has dropped four points to a score of -4. This is seventeen points lower than this time last year.
General Economic Situation
The measure for the general economic situation of the country during the last twelve months dropped five points to a score of –58; this is a massive forty points lower than this time last year. This score has not been this low since Feb ’93 when it was -59.
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Expectations for the general economic situation over the next twelve months have dropped one point to -39; twenty-nine points lower than this time last year. This score is the lowest on record for this measure (i.e. since 1983).
Climate for Major Purchases
The major purchases measure has fallen by eight points, from -24 to -32; this is thirty-six points lower than this time last year. This score is the lowest on record for this measure (i.e. since 1983).
Savings Index
The ‘now is a good time to save’ Index, has dropped by 3 points to +25, this is ten points lower than this time last year.
