Confidence among UK consumers has reached its lowest level since 1990, just before the begging of the most recent economic recession, it has been revealed.
With millions of people struggling to become debt free, GfK NOP has discovered that most consumers now feel that a recession is looming.
The research firm’s confidence currently reads minus 29, which is five points down on a month ago and 27 points below the level of 12 months ago.
Rising petrol costs and falling house prices are believed to have played a major role in seeing such a sharp dip in consumer confidence.
“The future months may see even further falls in confidence, as increasing inflation and dropping house prices make reining in their spending even more likely to the UK consumer,” said Rachael Joy from GfK NOP.
According to the latest figures from the Nationwide Building Society, the average house price in the UK fell by £5,000 over the course of May.
Written by Giles Stevenson