Consumer confidence continues decline

by Richard Kilner

Story link: Consumer confidence continues decline

The latest Nationwide Consumer Confidence Index has revealed that consumer confidence fell 7 points in July, to 56.

This is the third consecutive time the monthly index has seen consumer confidence fall.

The Expectations Index saw an even heftier fall, down 13 points, continuing a trend which began in February of this year.

The Bank of England’s decision to hold interest rates at the historic low of 0.5% was welcomed by consumers, and the rate is not thought likely to increase this year.

Chief Economist Martin Gahbauer has attributed the continual falls in confidence to uncertainty regarding what the next six months might hold.

Gahbauer emphasised concerns regarding disposable income, and added that the rising cost of fuel and food may be encouraging negative sentiments about the future.