02 Aug 10

Consumer Confidence - July Update

Consumer Confidence continues to fall as fears for the future of the economy grow.

Here are the key points for July 2010:

Consumer Confidence has decreased by three point to -22, now at an 11 month low.

This was driven primarily by a thirteen point drop in "Perceptions of the economy over the next 12 months". This continued slide makes a double dip recession look like a greater possibility the longer it continues. Potentially consumers are already factoring in the governments announcements on spending cuts and the effect it will have on the economy.

Interestingly there has been an eight point rise in "Climate for Major Purchase" driven by either people wanting to make purchases before any rise in VAT or by the fact they believe poor economic conditions will lead to more bargains.