Consumer confidence has hit a new 15-year low as debt management issues spiral out of control for many thousands of families.
According to the latest data from GfK NOP, the state of the economy and the lack of money in people’s pockets have seen consumer confidence reach its lowest level since November 1992.
The research firm’s reading of the current situation for UK consumers is that they have become less optimistic about their ability to spend money now and their prospects for doing so over the course of this year.
Rachael Joy from GfK NOP remarked: “With the news dominated by stories of recession, the credit crunch, housing market falls, and future petrol and food price increases, it will take more than a quarter point reduction in interest rates to alleviate the current gloomy mood of the UK consumer.”
The Bank of England opted to cut the base rate of interest to five per cent earlier this month but concerns have since been raised that this move has not had an impact on how much it is costing Britons to borrow.