Consumer confidence slumps

British consumer confidence fell again in June, led by concerns over job prospects, according to a Nationwide survey.

11:35 05 July 2005

British consumer confidence fell again in June, led by concerns over job prospects, according to a Nationwide survey.

Despite consumer qualms, the survey found it likely that the Bank of England's monetary policy committee would keep Britain's interest rate unchanged.

With drops in five out of seven indicators, the consumer confidence report suggests that Britons lack confidence in the economy and its future prospects.

The greatest fall came in terms of employment prospects, with 12 per cent fewer consumers confident about the number of jobs available to them.

The fall means that this indicator is now at its lowest level since Nationwide began measuring confidence in employment prospects.

The British Retail Consortium's recently expressed fears of a consumer-led recession appear to have been compounded by Nationwide's report.

Both indicators on the UK economic situation and the future economic outlook fell by five per cent.

Nationwide's head of external affairs, Alan Oliver, said: "Over the last six months, all seven indicators of confidence have fallen, reflecting the fact that people are feeling increasingly uncertain."

The report concludes that negative sentiment among UK consumers is gathering momentum, increasing pressure on the Bank of England to change interest rates.