Consumer Confidence Indicated As Falling
The outlook which Britons hold in regards to their finances has continued to weaken, new figures show.
In the latest consumer confidence survey carried out by Nationwide, it was revealed that in June people viewed not only their own monetary situation - but that of the economy as a whole - to be in a worse position than recorded in May. The financial services provider’s overall Consumer Confidence Index was indicated as standing at 61 in June, a fall from the 65 which was logged in May.
Research from the firm showed that the drop in confidence was mainly driven by its expectations index. Currently at 64, the index has fallen by six points from the 70 noted
during the previous month. It was indicated that more than half (53 per cent) of people believe that the economy will be in worse shape in six months’ time in comparison to its present situation. During the same study carried out last year only 29 per cent of Britons thought the state of the economy would diminish over the next half-yearly period.
Furthermore, the firm suggested that recent rises in the cost of petrol and food, as well as a diminishing housing market, have seen consumers become more pessimistic about their financial outlook.
Although the present situation index score stayed flat at 56 it was revealed that some people have concerns about their income. Last month 16 per cent of Britons thought their household salary will be higher within the space of six months, a fall from the 21 and 26 per cent recorded in May 2008 and June 2007 respectively.
Due to such worries about money it could be possible that people are struggling to meet various areas of financial demand such as credit cards, loans and utility bills.
However, despite many having concerns about their finances, consumers believe that now is a good opportunity to make a large purchase. According to the firm, some 18 per cent of Britons thought June was an ideal time in which to buy some major items - for example a car or house. This was the highest proportion noted since July 2007. Overall, however, the spending index stayed consistently at 60 over the course of May and June.
For consumers looking for an effective way in which to fund making such a large purchase, taking out a low cost loan might be recommended.
Chief economist at Nationwide Fionnuala Earley said: “This month’s drop in confidence is to be expected given the recent run of bad news. With reports of rising inflation rates, weaker economic growth and further falls in house prices, it is not surprising that people are feeling much less optimistic about the future. While consumers appear to be fairly relaxed about the availability of jobs, with unemployment beginning to rise, we are likely to see a change in labour market sentiment over the coming months.”
For people who have concerns about their capacity in which to manage their money in the months to come, applying for a loan could be recommended. In doing so it is possible that borrowers can supplement their spending, meet various areas of financial demand and make provisions for the future quickly and easily. This might be especially helpful after a study by Nationwide in May revealed that 57 per cent of Britons were worried that they were not saving as much money as they thought they should be.
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