Confidence at record low

Jul 9 2008 by Peter McCusker, The Journal

CONSUMER confidence slumped to a record low during June as a run of bad economic news made people worry about the future.

Ongoing economic uncertainty, a weakening housing market and higher food and fuel costs all combined to make consumers feel increasingly negative, the Nationwide said.

Its consumer confidence index dropped to just 61 during the month, down from 65 in May and 93 in June last year, to hit a new record low for the sixth consecutive month.

The fall was driven by fears that the economy will further deteriorate in the coming months, with 53% of people expecting the situation to get worse going forward – more than double the proportion of people who felt the same 12 months ago.