Consumer confidence slumps to record low

Rising costs and talk of falling property values have pushed Britain's consumer confidence to record lows, according to new figures released by market research company Nielsen and the British Retail Consortium (BRC).

Mike Watkins, Senior Manager, Retailer Services at Nielsen commented: "The Nielsen/BRC UK Consumer Confidence index now stands at 79. To put this into context, this time last year the index stood at 91, which was the lowest score we had seen since we began polling this survey in 2003. The fact that the score has plummeted a further 12 points is telling of how much consumers are being stretched."

Watkins adds that the survey reveals that 55% of people ranked inflation as their main concern during periods of economic downturn while 39% said high interest rates. Unfortunately they are being hit with both at present, causing significant unease.

The fall in consumer confidence can be attributed to a combination of increasingly negative consumer sentiment about job prospects, personal finances and personal spending power. Sixty per cent of people polled said they thought job prospects were either not so good or bad compared with 50% in 2007. Fifty-seven per cent of people now think that their own personal finances will be not so good or bad over the coming 12 months, compared with 46% six months ago. And three quarters of people believe that now is not a good time to spend on things they want or need.

British Retail Consortium Director General Stephen Robertson said: "With one in five people saying they have no spare cash, the highest ever recorded by this survey, customers are telling us they are cutting back on spending on all sorts of non-essentials. Clothes, footwear, furniture and new technology are the biggest casualties as consumers attempt to manage their money.

"It's clear we are seeing the effects of customers' concerns about the future and about their own levels of debt."

When asked about major concerns the economy was cited by more people than any other (31%) followed by debt (26%) Other major concerns included work/life balance (20%) and immigration (16%).