LONDON: Consumer confidence remained at its lowest in December since the start of the Iraq war in March 2003, according to a survey. Consultancy firm GfK NOP said its consumer confidence index dropped to -9 from -8 in November, against an analysts' prediction of improvement to -6.
The firm's pollsters also reported that sub-indices measuring people's perception of their own finances in the next 12 months dropped a point to reach +7 and of the general economic situation in the country decreased by one point to -20. The index on the general economic situation over the last 12 months remained unchanged at -29.
GfK NOP's divisional director Carol Bernasconi said consumer confidence is not yet showing signs of an upturn and a year, which has seen an unprecedented level of natural disasters across the world, has left the country in a subdued mood.
The survey found that the major climate measure index dropped three points to +2 in December, while the perception of whether now is a good time to save stands at +16, up one point from November.
The survey, conducted during 30 November-19 December on behalf of the European Union, covered a sample of 2,109 individuals aged 16 plus.
Economists fear that Britain, Europe's second-largest economy, is on a course of its slowest growth this year since 1992 after a surge in oil prices and the end of the housing boom. Though official figures showed that retail sales have picked up for a fourth month in November, the reducing confidence level suggests the pickup may not last.
GfK NOP said the survey indicates that consumers are still wary of an economic slowdown, even though the housing market has shown signs of recovery and oil prices have started falling from a record high.
In normal years, consumers spend 10 billion pounds more in December than in any other month and reports of Christmas sales have so far indicated increases. The Confederation of British Industry's index of retail sales for December has risen to a 10-month high, CBI said on 21 December. But higher sales could be a result of discounting and sales announced by major stores.
The British Bankers Association said November saw the strongest mortgage lending since July 2004, when seasonally adjusted net lending increased by 5.1 billion pounds, compared with an average of 4.4 billion pounds over the previous six months. BBA accounts for about two-thirds of all mortgage approvals for house purchases. It, however, said November was a weak month for net consumer credit, which at 263 million pounds was down 63 per cent from the previous month and 77 per cent from a year earlier.
Posted
on : Sat, 31 Dec 2005 02:10 GMT | General News
By : Salim Patel
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