Consumer Financial Outlook Revealed To Reach Record Low
The public’s opinion in regards to their finances and the general economic situation continues to weaken, it has been reported.
In the latest Gfk NOP index it was revealed that consumer outlook fell over the course of last month to one of the lowest-ever figures recorded. With drops noted across all of the organisation’s indices, Britain’s overall confidence stood at -34. Such a figure represents a decrease of five points from data recorded in May and is 31 points below findings noted this time last year. The firm went on to point out that the latest findings are one of the lowest figure noted for over 30 years.
Gfk NOP revealed that the public’s views on the state of their finances during the last 12 months stands at -17, a decrease of six points from May. Meanwhile, consumer opinion about their personal finance situation over the coming year has fallen to -9. Down by 20 points from June 2007, this is the lowest figure noted for more than 13 years. The company also showed that the outlook on the country’s general economic state both over the past year and looking forward for the next 12 months have dipped to stand at -66 and -45 respectively.
Following on from an overall negative outlook on their personal finance situation, it may be possible that consumers are finding themselves struggling to cope with various areas of financial constraint such as loans, credit and store cards, household bills and transport costs.
Rachael Joy of GfK NOP’s consumer confidence team said: “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 one point higher than the -35 recorded in March 1990 when the UK was heading into a 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.”
Meanwhile, the index tracking whether people think it is now a good time to make a major purchase has reached an all-time low. Standing at -35, down 41 from June 2007, it is the worst figure noted since 1982.
It is possible that such purchases could include areas such as cars and houses, items which could be purchased via a loan.
And with consumer opinion on spending waning, people may be forgiven in thinking that a willingness to save money for the future is on the rise. However, the index measuring whether Britons think that now is currently a good time to save fell by three points over June to stand at +22. This is down by 14 points from figures recorded during the same month in 2007.
With financial confidence in a state of depression, those looking for an efficient way to supplement their spending during the credit crunch might wish to consider taking out a loan. In applying for a cheap loan it may be possible that borrowers are able to settle existing debts, make major purchases and pay for work on their homes more effectively. This might prove to be of particular assistance after the Financial Reality study by Alliance Trust Research Centre in April revealed that consumer spending had reached a record low in the 11 years the group has been measuring Britons’ outlook on their finances.
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