UK consumer confidence fell in June to the lowest level since the London poll tax riots that preceded Margaret Thatcher's ouster as Prime Minister in 1990, as house prices fell across the nation.

Rachael Joy in the Consumer Confidence team at GfK NOP commented:

"This month the Index score continues to tumble and is almost at its lowest level since the survey began in 1974. At -34 it is only 1 point higher than the -35 recorded in March 1990 when the UK was heading into recession.  

With rising inflation, gloomy forecasts for interest rates and soaring fuel, utility and food prices dominating the front page headlines, it’s no surprise that confidence in the general economy is almost in freefall. It seems unlikely that this trend will reverse in the near future”

Consumer Confidence Measures – June 2008

The overall index score this month has fallen five points to -34, thirty-one 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 -14.   

 

Personal Financial Situation

The index measuring changes in personal finances during the last year has dropped by six points to a score of -17; this is twenty points lower than this time last year. This level has not been seen since April '95.

The forecast for personal finances over the next year has dropped five points to a score of -9. This is twenty-two points lower than this time last year. This level has not been seen since September ’95.

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 –66; this is a massive forty-two points lower than this time last year. This score has not been this low since December ’92 when it was -67

Expectations for the general economic situation over the next twelve months have dropped six points to -45; thirty-five points lower than this time last year. This score is the lowest on record for this measure (GfK NOP has been tracking this measure since 1982).

Climate for Major Purchases

The major purchases measure has fallen by three points, from -32 to -35; this is forty-one points lower than this time last year. This score is the lowest on record for this measure (GfK NOP has been tracking this measure since 1982). 

Savings Index

The ‘now is a good time to save’ Index, has dropped by 3 points to +22, this is fourteen points lower than this time last year.