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| London's Tower Bridge |
UK consumer confidence fell in April to the lowest since November 1992, after falling house prices and higher energy costs hit households' spending power, according to polling organisation GfK NOP Ltd.
GfK NOP Consumer Confidence barometer - April 2008
- With a drop of five points to –24, the Index score this month is now at its lowest level since November 1992.
- All five measures have fallen, but the greatest drop is a fall in confidence in the general economy over the last 12 months.
- The ‘now is a good time to save’ Index has risen by 3 points to stand at the same level as this time last year
Rachael Joy in the Consumer Confidence team at GfK NOP commented:
"Consumer Confidence is at its lowest since level since November 1992. This month’s drop has been mainly driven by dropping confidence in the general economy over the last 12 months. With the news dominated by stories of recession, the credit crunch, housing market falls, and future petrol and food price increases, it will take more than a quarter point reduction in interest rates to alleviate the current gloomy mood of the UK consumer.”
Consumer Confidence Measures – April 2008
The decrease in the overall index score this month – now standing eighteen points lower than this time last year - has been caused by a fall across all five measures. The annual moving average has dropped to -10.
|
April 2008 |
March 2008 |
April 2007 |
| Overall index score |
-24 |
-19 |
-6 |
| Personal financial situation over last 12 months |
-8 |
-4 |
0 |
| Personal financial situation over next 12 months |
0 |
+4 |
+11 |
| General economic situation over last 12 months |
-53 |
-43 |
-28 |
| General economic situation over next 12 months |
-38 |
-32 |
-18 |
| Climate for major purchases |
-24 |
-21 |
+6 |
Personal Financial Situation
The index measuring changes in personal finances during the last year has dropped by four points to a score of -8; this is eight points lower than this time last year. This level has not been seen since December ’96.
The forecast for personal finances over the next year has also dropped four points to a score of 0; eleven points lower than this time last year. This level has not been seen since December ’96 when the score was -2.
General Economic Situation
The measure for the general economic situation of the country during the last twelve months dropped ten points to a score of –53; this is 25 points lower than this time last year. This score has not been this low since March ’93 when it was -55.
Expectations for the general economic situation over the next twelve months have dropped six points to -38; twenty points lower than this time last year. This score has not been this low since October ’92.
Climate for Major Purchases
The major purchases measure has fallen by three points, from -21 to -24; this is thirty points lower than this time last year. This level of depression has not been seen since November 1990 when this score was -25.
Savings Index
The ‘now is a good time to save’ Index, has risen by 3 points to +28, bringing it to the same level as this time last year.
