Consumer confidence at record low as people fear for future

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

Ongoing economic uncertainty, a weakening housing market and higher food and fuel costs all combined to make consumers feel increasingly negative, 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 per cent of people expecting the situation to get worse going forward – more than double the proportion of people who felt the same 12 months ago.

At the same time just 16 per cent of people now think their household income will be higher in six months’ time, down from 21 per cent in May. Consumers’ confidence in the current economic situation remained static during the month, although it was already at a record low, with 52 per cent of people saying they thought the current economic situation was bad.

But people were more upbeat about employment levels, with 50 per cent thinking there are currently some or many jobs available.