United Kingdom: Consumer confidence dips further in October
December 17, 2010
In November, the consumer confidence index produced by the Nationwide Building Society (NBS) fell 7 points over October to 45 points, which marked the lowest level since March 2009. Consumer sentiment has been falling almost uninterruptedly after peaking in February this year, which does not bode well for a recovery in private consumption. November's drop was driven by a more negative assessment by consumers of future spending, which saw this component falling 13 points. This drop was unexpected as consumers were expected to make big-ticket purchases before January's VAT hike. Moreover, the present situation index fell by 5 points over October while the expectations index that reflects sentiment about the economy, labour market and household income over the next six months, declined 9 points.