Nationwide says region's confidence is at an all-time low
Jan 22 2008 by Karen Dent, The Journal
CONSUMER confidence in the region has plummeted to an all-time low, according to new figures from the Nationwide.
The building society’s quarterly Consumer Confidence Index fell by 17 points in the final three months of 2007, leaving just over a third (36%) of people in the North-East feeling positive about the current economic situation.
The region is the least confident area of the UK regarding job availability, with figures showing that 47% of consumers feel positive about job availability. And just 40% of those quizzed told researchers they were optimistic about future job availability.
The region’s consumers are also keeping a tight grip on the purse strings, with just 10% believing that now is the right time to make a major purchase like a house or a car.
Again, researchers found the North-East to be the least confident part of the country in this category.
Overall, the region scored near the bottom of the “unsettled” section of the confidence barometer, while the national mood was “fair”. Northern Ireland and Scotland were the most confident regions, while the West Midlands was the most pessimistic.
The building society’s Rosemary Callender said: “Continued uncertainty in the financial markets, record oil prices, rising food prices and slowing house price growth all seem to have contributed to a deterioration in people’s confidence over the past three months.”
The figures are at odds with recent statistics from the North-East Chamber of Commerce, which said the region’s businesses ended 2007 on a high, pointing to strong order books, sales growth, more exports and increasing numbers of firms forecasting higher turnovers. The NECC did concede the effects of high interest rates and the increasing cost of fuel were causing concern for consumers.
But spokesman Mike Parker said: “Certainly the research that NECC carried out showed high levels of optimism among businesses in the North-East who have strong order books. If businesses are performing that’s still going to mean we have good employment levels and a good economy.”
