United Kingdom: Consumer confidence falls to lowest level on record
March 18, 2011
In February, the seasonally adjusted index of consumer confidence produced by the Nationwide Building Society (NBS) dropped 10 points to 38 points, which represents the lowest level since records began in May 2004. The figure followed on a significant drop in January and came in below the 41 points recorded in the trough of the crisis in January 2009. The decline in consumer sentiment was broad-based, with drops in all sub-components of the index. However, the primary factor behind the drop was a weaker assessment of the economy in the next six months. In addition, respondents were significantly less upbeat regarding the future purchase of major goods. Weak consumer sentiment augurs ill for a recovery of private consumption.