Consumer confidence ‘takes another tumble’

Consumer confidence in the UK has taken another tumble and reached levels not seen since the early part of 1990.

The GfK NOP index, which is used in the assessments of the Bank of England, has put consumer confidence at -34 points as millions struggle to deal with their debt management difficulties.

Optimism over the economy has scarcely been in shorter supply since the index was first formed in 1974 and confidence among the general population has fallen dramatically, according to GfK NOP’s assessment.

Rachael Joy from the research company said: “With rising inflation, gloomy forecasts for interest rates and soaring fuel, utility and food prices dominating the front page headlines, it’s no surprise that confidence in the general economy is almost in freefall.”

Howard Archer from the Global Insight recently predicted that the economic problems will increase the number of Britons resorting to so-called distressed borrowing as they struggle to make ends meet.

By Dan Mather