UK Consumer Confidence is Freefalling

UK consumer confidence have taken another tumble as polling company Gfk NOP report that consumer confidence is only one point above its lowest ever level. The index came in -34, which was five points below May’s figure and near the -35 recorded in March 1990 during a recession.

All of the index’s sub components showed a fall, with confidence in the economy over the next 12 months at -45, which is 42 points down on the same time time last year. This is being blamed on the aftermath of the ongoing credit crunch, which has seen rising food, fuel and energy costs.

An analyst from GfK NOP, Rachael Joy, says: “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.”