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Consumer confidence takes a hit

Consumer confidence takes a hit

Category: Money

Updated: 30/04/2010
First Published: 30/04/2010

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
Consumer confidence fell for the second month in succession in April, as worries over the economy and personal finances took hold.

The GfK NOP Consumer Confidence fell by one point in the month, although the index has climbed by 11 points since April 2009, reflecting improving public sentiment in the last 12 months.

Feelings on consumers' personal financial situation over the last 12 months picked up slightly, as did confidence about the general economic situation in the last year.

Encouragingly, figures showed that consumers are increasingly turning their minds to saving, as the 'now is a good time to save' index surged by six points in April and is ten points higher than it was in April 2009.

However, thoughts on the next 12 months are not as positive. The index reflecting feelings on personal finances in the next year fell by two points, but still remains in positive territory.

Confidence on the economic outlook for the next year also fell slightly, as did the index showing whether consumers felt it is a good climate in which to make major purchases.

"As the opinion polls are suggesting, the government has not got the boost from a rise in economic confidence that probably represented its best hope of retaining power," Nick Moon, managing director of GfK NOP social research, commented.

"While things are far better than they were a year ago the improvement has pretty much stalled, and there has been no real change in consumer confidence since last September.

"The drop in the score for now being a good time to make a major purchase is a significant one, and suggests people are still feeling very cautious."

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