Economic woes hit consumer confidence, survey shows

September 21, 2011

Consumer confidence fell to a four-month low in August as the economy continued to struggle, a Nationwide survey showed today.

The building society said it was a relief the drop was not bigger during a month when many UK major cities hit by the worst rioting in decades and global economic uncertainty hit share prices.

As a result the monthly index fell to 48 from July’s already relatively modest reading of 49.

Nationwide economist Robert Gardner told Reuters: “Further signs that the UK economy is struggling to gain momentum, disorder in a number of English cities and renewed turbulence in global financial markets would all have been expected to weigh down heavily on confidence during the month.

“The relative stability is probably a reflection of the already subdued level of confidence, rather than indicating resilience in the household sector.”

The decline in the Nationwide index mirrors a relatively modest fall in the similar GfK NOP survey for August, which also hit a four-month low.

Nationwide forecasts further sluggish growth and subdued consumer sentiment for several months.


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